Communication is key!

You must talk about your financial assets and how you deal with money and what is important to you. The key theme should be, "show me your financial picture and I will show you mine."

1. Talk to your spouse about all of your assets (house, bank/retirement and investment accounts), your liabilities (credit card debts and any outstanding personal, auto, home or student loans) and the details of your personal income. Setting forth your financial picture in the beginning so each knows where the other stands must be a priority. Keeping secrets (financial or otherwise) is detrimental to any relationship, especially this one. Let the reality of your situation be acknowledged and then your joint financial plan can be built.
2. Create a joint wish list. Discussing what each of you want, both long and short-term is essential to personal financial harmony. Take the time to write all of this down and make sure both of you agree to it. Include on the wish list the problem areas too - examples might include buying a home, paying off debt, establish a college account for children, buying a new car, starting your own business, retiring early, purchasing a second home in Hawaii, establishing a 6-months savings emergency account, etc.
3. Create specific short-term goals (i.e. pay down credit card debt) and long-term goals (i.e. buy a home) and create a specific game plan to achieve your goals*. Put this plan down in writing and monitor your progress on a frequent basis to ensure you are staying on track.
4. Discuss your views about money. Are you a saver or a spender? Do you want a joint banking account or individual accounts (and therefore, maintain some privacy)? Do you agree on the minimum amount to save each month in order to achieve your financial goals versus how much you are willing to spend on today's enjoyment? Who will be responsible for the monthly bills? Set a meeting time each month to review your progress. It all begins with an initial discussion that allows you and your spouse to put together a game plan that works for both of you.*

Create a spending plan - also known as a BUDGET.

Keeping track of all income and expenses each month is a must in all financial plans. Both of you must agree to this game plan and to the amounts you will spend each month for each item. If you decide you will spend "x" on groceries-do it. All "extra" money saved each month after paying essential bills is allocated toward your financial goals and attaining your wish list. This method helps the "spender" and "saver" since an agreement of amounts and where money is placed each month has been agreed upon. The amount you place toward your wish list each month is based on prioritization of the things on your wish list - it's ok to place some money toward this goal and some money toward that goal etc. "you eat an elephant one bite at a time"-a little money into your "wish list" account works. Using auto-pay for monthly bills and placing money into a separate wish list account is preferred.

If you are planning to change your last name and take your spouses's, contact the following agencies: (GIVE LETTERS)

• Credit reporting agencies:

  EQUIFAX Credit Information Services, Inc.

  View website
  P.O. Box 740241
  Atlanta, Georgia 30374
  800-685-1111
  

  TRANSUNION LLC

  View website
  Consumer Disclosure Center
  P.O. Box 1000
  Chester, Pennsylvania 19022
  800-888-4213
  

  EXPERIAN

  View website
  P.O. Box 2104
  Allen, Texas 75013
  888-397-3742

• Social Security Administration

  View website
  Social Security Administration
  Office of Public Inquiries
  Windsor Park Building
  6401 Security Blvd.
  Baltimore, MD 21235
• Your Financial Institutions
• Utility companies (Gas, water, electric and telephone)
• Credit Card companies
• Library cards
• AAA cards
• Companies where you keep your investment accounts, brokerage accounts, mutual Funds, and retirement accounts.
• Institutions or companies holding your personal or business loans
• Institutions or companies that hold your home, automobile or boat loans
• Your employer to change all required paperwork

TAXES

According to the IRS, you are considered married for filing purposes as long as you are married prior to December 31st of that year. Therefore, you need to visit with your tax preparer with both spouse's pay-stubs, all other reportable income and all expenses to do a tax estimate and get a handle on what your joint tax liability will be. Do not be surprised on April 15th if you owe money to the IRS and state taxing authorities - do the estimate now and change your tax with-holding to account for the change your married status will have on your combined tax liability.

DEBTS

Before you say "I Do," know your partner's debts. Entering a marriage with "open eyes" is essential. Your partner's debts, credit score etc. become a part of your reality when you wed so know everything in advance. Order credit reports from all three of the major reporting bureaus for both parties and share them with each other. Any account with joint ownership means you will both be liable. Discuss who will pay these debts - determine in advance if the debts are your sole responsibility or your shared responsibility. Discuss your plan for paying these debts and your joint goals for building a successful shared financial future.

Click here for your personal credit report. ->

WILLS, TRUSTS AND DURABLE POWERS OF ATTORNEY (covering health and financial) matters:

• Your WILL states your wishes in terms of:
• Who receives your assets when you die.
• Who the guardian of your children will be.
• Who will be the executor of your estate and execute your wishes after you die.

Better for you to decide the answers to these questions rather than have your state government decide how to handle your affairs (dying without a will is termed Dying Intestate and the state government will decide how to execute your estate in the absence of a WILL).

Click here to get your will done online. ->


• Your DURABLE POWER OF ATTORNEY-HEALTHCARE document states your wishes with regard to your health. Do you want to be kept alive under any condition, and therefore, spend all of your assets maintaining this condition (life support), or would you prefer to authorize a "pull the plug" option under certain conditions? If you do not execute this document, you will be kept alive at all costs and under any health condition (true in most states). It is up to you to consider your desires and get this document in place. This document also includes your wishes at death - cremation, buried at sea, buried next to spouse, donation of body parts, etc. Again, it is better that your wishes are known instead of the state deciding.
• Your DURABLE POWER OF ATTORNEY-FINANCIAL MATTERS. This document states your wishes on who will act on your wishes in regard to your financial affairs if you are unable to act. You want to be the one to name the person who you know, trust and believe understands your life, finances and your wishes rather than the state naming someone to act on your behalf. Your trust document is an advanced form of estate planning usually reserved for wealthier clients. You should consider speaking to an attorney about executing this document as your wealth increases.

MEDICAL INSURANCE

No one should ever be without health insurance coverage. If one of the spouses has no coverage, immediately add the spouse to the other's policy. If both have coverage, determine if one of the programs allows you to opt out and receive money back Ð of course you will need to add that spouse to the one plocy that you choose to continue. Please read your policy and understand your coverage.

Click here to get a quote. ->

LIFE INSURANCE

Newlyweds do not usually take out life insurance on each other; we can imagine some instances where it is appropriate but this is not the norm. However, with the arrival of children, we believe it is imperative to have life insurance to protect their futures. The death of one spouse always causes additional expense/loss of income and the tax free receipt of money from a life insurance policy will be needed in most cases to supplement this lost income.

Click here to get a quote. ->

TITLING ON ACCOUNTS

Once married, not before, you may choose to officially give your spouse access to your assets to your spouse (all state's have laws governing this). Each different financial institution has their own form/documents; simply request the documents, complete them and return to the financial institution. Most accounts can be retitled to joint tenant with right of survivorship - this means in the event of one spouse's death, the remaining assets pass to the living spouse. Bank accounts, real estate, property (automobiles, boats, etc.), credit cards, investment accounts are all examples of what can be retitled. Again, any and all of these can be retitled or remain in each individual spouse's name.

* A financial planner may be essential

+ 5 tips that may be helpful for "the money talk" with your spouse

1. Create a specific time each month to discuss your finances. This time is important so do not constantly miss or change meeting time. Have this meeting at a time of the day when you are least likely to be interrupted, fully awake and able to really focus on the importance of this conversation. Come to the meeting with all your financial information in hand to discuss.
2. Begin the conversation with an expression of appreciation for your spouse and for the positive impact they had over the course of the month. Yes, take note of these during the month so you can acknowledge your partner for their contributions to you and your relationship in financial terms.
3. Don't place blame or make accusations directly at your spouse; use non-judgemental language to convey your feelings - for example, "I feel we are not saving enough for our house down payment or paying down our debt" vs. "I feel you have a spending problem."
4. Don't interrupt your spouse when they are speaking - respect their "side" and point-of-view, whether you agree or disagree, repeat what they are saying and acknowledge what they are saying/feeling.
5. Reward yourself for all financial progress. Everybody needs to "recharge" their batteries and spending money on yourself is one way to do this - BUT do this in a way that does not undermine or impede your financial progress. Free walks on the beach, bicycling, visiting a museum, attending a community concert or attending an outdoor film event are all things that can be enjoyed but not break your financial plan.