Financial Considerations That Will Make or Break Your Post-Marriage Finance
For many millennials, marriage is the final step in adulthood and the start of creating a life with your significant other. In this Finance Blog, you’ll learn how your post-marriage finance should be. Despite how exciting it can be to make such an important commitment, there are several financial factors you need to consider before taking that plunge. Far from just setting yourselves up for a lifetime of security together, understanding these financial nuances will ensure both partners have long-term peace of mind and experience lasting harmony during those early days following “I do.” Read further for insight into our four key financial considerations – topics that could make or break your post-marriage finance.
Combining Finances
Each spouse needs to decide if they want to manage their money separately or if bank accounts, bills, and other expenses will be paid from a joint account. For many couples, this is the first step when it comes to setting up post-marital finances. Both options have pros and cons, so consider your individual financial styles, spending habits, income amounts, and career outlooks. Both partners should feel equally committed to whatever option the couple decides is best for them.
Tax Filling Status
Once you are married, you will have to decide whether it is best for both partners to file taxes jointly or separately. This decision can save or cost thousands in tax dollars, so weighing the pros and cons of each option is very important. Speak with a professional accountant who can help you determine which option is best suited to your individual circumstances. In some cases, filing jointly will provide more benefits, while in other circumstances, it may be wiser to file separately.
Insurance Policies
Married couples should review their insurance policies together and make sure they are covered by enough coverage that meets both partner’s needs. This includes personal liability coverage as well as health insurance, life insurance, and any other coverage the couple has in place. Insurance policies need to be updated and combined once married, so it’s important to review your current policies and determine what needs to be changed or added. In fact, it’s a good idea to speak with an insurance agent who can provide advice about choosing the best coverage for you both.
Long-Term Financial Goals
In addition to understanding how you will manage your day-to-day finances post-marriage, you also need to determine what your long-term financial goals are. Do you plan to buy a house in the near future? Are you planning on starting a family soon? Will one partner give up their career to raise children while the other advance their own career? Discussing these questions and more will help both partners lay out a clear path for their shared financial future.
Life after marriage should never be a financial burden for each spouse but rather an opportunity to grow and build your lives together while enjoying the stability of a two-person household. Setting up post-marriage finance with these four considerations in mind will ensure both partners are comfortable and secure in their joint commitment. As long as you are both honest and open about your individual financial situations, values, and aspirations for the future, you can set yourselves up for long-term success. All it takes is a bit of preparation now so you have the best chance to enjoy post-marriage finance in harmony.…
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