Planning a Money Smart Marriage

By Diahann Lassus CFP^®, CPA, Lassus Wherley & Associates, P.C.

May 1, 2001 12:00 PM
 

Are you planning a spring or summer wedding? Did you know that issues with money can really cut that honeymoon short? Money is the number one reason for problems in a marriage and yet few couples take the time to talk about money to head off the issues.

Follow these tips and get your merger off on the right foot:

• Schedule regular meetings to discuss all the areas of your finances. Most people find it uncomfortable to discuss money, but the best way to head off future misunderstandings is to develop open communication.
  
  
• Be open in your communication now and don't let your future spouse be surprised by your finances whether you have a lot of debt or you have been a great saver. Surprises early on can undermine trust in the future.
  
  
• Agree on how you will track spending and who will be responsible. Discuss your spending and saving philosophy and begin to establish mutual objectives.
  
  
• Establish a preliminary expense plan in consolidating both income and expenses. Agree on levels of spending for each of you and what level of spending will require discussion. This can prevent many heated discussions after a purchase.
  
  
• Talk about your dreams and long-term goals. What do you need to do with your financial planning to make those dreams happen? How can you save enough to purchase your first house or have your first baby?
  
  
• Develop a list of short and long-term goals and begin to establish the priority.
  
  
• Will you pool your money? Think about a prenuptial agreement. This is especially important if either of you is bringing significant assets to the marriage, own a business or have children from a previous marriage. This can help head off serious future issues with money.
  
  
• See an attorney and get those wills drafted soon. The purpose of a will is to make sure your loved ones are taken care of according to your wishes, so make sure you take care of this one.
  
  
• Hire a financial advisor to help draft that foundation financial plan. Establishing your roadmap early can be a great boost to your long-term planning and many times it is easier to work with a third party to work through some of the differences in perspectives. Getting off to a really positive start is important. For parents and grandparents out there, this could make a great wedding gift.

Remember, money is a scarce resource and the decision on how to allocate it is an important one. Open discussions and positive financial planning can help you sustain that marital bliss for the long-term and can help you make your dreams come true.