Congratulations, you’re engaged! Before you start planning for the wedding, take some time to talk with your intended about the dreaded “M” word- “MONEY”. Talking about money is extremely difficult and it is still a taboo conversational topic in the U.S. However, if you are planning on spending the rest of your earning years and retired life with your beloved, it’s critical to discuss money matters before tying the knot.
Statistics report that 50% of all U.S. marriages end in divorce with financial discord as the primary cause. Normally, the way individuals are socialized with money when growing up can dictate how they behave with money as adults. Finding out about the financial history of your spouse-to-be can help head off financial surprises after you are married. For example, if your fiancé never worked during summers and got an unlimited allowance, perhaps saving and budgeting won’t be habits they have developed —yet. Some general topics to discuss in a neutral, open environment are income/earnings, separate property, loan balances, how each of you thinks about money, how money will be handled in your marriage (as in his/hers/ours?) and which one of you will take on the role of the household CFO. Stickier topics can be what credit reports look like for each of you (be sure you are not taking on a huge amount of debt unless you have agreed to this) and whether or not a prenuptial agreement is a good idea that BOTH of you endorse.
Being engaged is a magical time with special celebrations and hopes and dreams of marital bliss. Having the “money talk” will make for smoother marital seas. Start now!
CCMI provides personalized fee-only financial planning and investment management services to business owners, professionals, individuals and families in San Diego and throughout the country. CCMI has a team of CERTIFIED FINANCIAL PLANNERTM professionals who act as fiduciaries, which means our clients’ interests always come first.
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