Spring weddings are in full bloom, and May is one of the most popular months to tie the knot. For engaged couples, the to-do list seems endless. But between choosing flowers and finalizing a menu, there’s one critical conversation that many future grooms and brides-to-be avoid: Money.
Talking about finances early on can set the foundation for a strong financial partnership — or tear relationships apart down the road. Nobody wants to discover their partner’s child support obligations while doing their first joint tax return.
Now’s your chance to put it all on the table. Here are essential money questions every couple should be asking before walking down the aisle:
Are you a spender or a saver?
Maybe you grew up clipping coupons while your partner’s family never thought twice about splurging. How do you expect to handle this as a couple? Talk openly about your spending philosophies, budgeting styles and what financial security means to each of you, so can understand and respect each other’s point of view.
How will you tackle debt?
Recent data reveals that 54% of people believe a partner with debt may be a reason for divorce.
Whether it’s car payments, outstanding credit cards or medical bills, share what you each owe and create a realistic repayment strategy. Will you pay down debt before buying a house? Balance debt repayment with saving? Also think about how you can avoid accumulating more debt as a couple.
How will you split the bills?
Every couple needs a clear path for covering shared expenses. Some couples split everything 50/50 while others contribute based on their income. One partner may shoulder the mortgage while the other pays all the miscellaneous household expenses. The key is finding an arrangement that feels fair to both of you.
Who will handle which financial responsibilities?
Even if you merge finances completely, someone has to pay the bills, manage investments and file taxes. Decide together who handles which tasks, and how you’ll both stay informed about your overall financial picture.
Will you choose joint accounts, separate accounts or somewhere in between?
Some couples prefer fully merged finances. Others like separate accounts to retain financial independence. And many choose a hybrid. A Bankrate survey found that 62% of couples keep at least some money separate from each other. Consider your comfort levels and what makes the most sense for your marriage.
What are your retirement goals?
Do you both want to retire at the same age? How much are you saving, and is it enough? If you’re still in your 20s and 30s, the power of compound interest is on your side. But every year you delay saving could cost you tens of thousands of dollars by age 65. Review employer 401(k) matches and IRAs, and make sure you’re both contributing to a shared future.
Have you addressed wills, beneficiaries and powers of attorney?
Marriage changes your legal status, and your estate planning documents need to reflect that. These documents ensure that if something happens to one of you, the other isn’t left fighting legal battles during a difficult time. Create or update your wills, beneficiary designations and life insurance policies, and establish powers of attorney so you can make medical and financial decisions for each other if needed.
Start your marriage on solid financial ground
As you plan a future together, make room for these financial discussions. The experts at Magone & Company can help. Call us today at (973) 301-2300 to help address your financial concerns with confidence before saying “I do.”
This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your business situation.