Don’t Get Married Without Asking Your Partner These 8 Finance Questions
Picking out the linens or tableware is only one step in getting ready for marriage. Discussions about finances are a crucial part of preparing for your future. Talking about money early in the relationship is essential to avoid future issues.
A study from Kansas State University, “Examining the Relationship Between Financial Issues and Divorce,” shed light on the subject. It found that couples who struggled with money at the beginning of their relationship were more likely to divorce.
1. How will finances be combined? For example, will you combine your accounts or keep them separate?
- Couples must decide how they want to handle their finances after marriage. Most choose to combine the accounts or open new joint ones.
2. Who will pay the bills each month? It’s easier to choose one person to handle bill payments. This avoids confusion and makes responsibility clear in the relationship. The person in charge of bill payments also usually handles tax preparation.
3. What is your debt? Questions about debt are essential for a healthy financial relationship.
- Debt can vary from student loans to credit cards. Understanding how much debt each person has before marriage will affect future decisions. Can you get a mortgage immediately after the wedding? Can you upgrade your living room furniture? All of these questions depend on how much debt you carry.
4. What are all of your income sources? The paycheck you see once or twice a month may be a part of a more significant income picture.
- To plan your future accurately, you must know all the income sources. For example, are you receiving annuity payments? Do you get royalty checks from a novel you published ten years ago? These details need to be shared with your partner.
- Being open about your income builds trust in a relationship.
5. Are you considering more education? Student loans are one of the most significant sources of debt. How will you pay for it if you or your partner consider more education?
- The Consumer Financial Protection Bureau states that student loan debt has reached $1.2 trillion. It’s estimated that the average borrower has $26,000 in student loans. Before you pursue more education, you should consider the impact on your future marriage.
6. What role do parents play in your finances? Are your parents helping to pay your bills? Or are you the one helping your parents? These are important questions that affect a couple’s financial plans and decisions.
- How would you feel if a parent helped during a difficult financial period? It’s important to set boundaries and repayment terms ahead of time.
7. How do you plan to save? Questions about saving the need to cover investments and retirement. Couples can create a savings plan to reach goals like buying a house or taking an international vacation.
- Do you contribute to a retirement plan at work? Do you have other investments? How will combining finances affect your strategy?
8. What are your financial dreams? It’s important to discuss your overall goals for the future.
- Do you want to retire before 50? Do you plan on changing careers? Your financial dreams need to be part of the conversation about the future.
- Your partner’s dreams may differ from yours, but you can combine many of them and work together to reach them. Understanding these plans before marriage will help you make better decisions.
Couples who ask financial questions before marriage are better prepared for the future. In addition, it’s easier to achieve the financial life you desire when both of you support goals that will get you there.
“If you want to thrive in today’s economy, you must challenge the status quo and get the financial education necessary to succeed” — Robert Kiyosaki
Updated For Medium.com
Originally published Don’t Get Married Without Asking Your Partner These 8 Finance Questions | LinkedIn
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The information contained herein is subject to change without notice. This material is provided for general and educational purposes only; it is not intended to provide legal, tax, or investment advice or to avoid penalties that may be imposed under U.S. federal tax laws. Contact your tax professional, attorney, or investment advisor regarding your legal, investment, or tax situation.
