Getting married is a legal and financial commitment that binds you to another person in many ways. In addition to discussing how you will budget your money, there are a host of other issues that need to be decided before you enter into the marriage contract. Here are three major financial decisions that you have to make in partnership with your future spouse before getting married.
Consider Your Assets and Debts
Before you tie the knot, you need to have a good idea of what every party is bringing to the table in terms of assets and debts. If there are significant debts or assets for either partner, you should strongly consider drafting a prenuptial agreement. There are a few issues you need to consider before deciding to create a prenuptial agreement. You should also have a good understanding of both people’s credit so that you can make financial decisions accordingly.
Determine Common Goals
Once you have discussed the state of your current financial health, you can begin determining your long-term goals. Before you jump into marriage, you need to determine your joint financial goals. This includes issues such as when and if you want to buy a house, what your investment strategy will be, how you want your retirement to look, and more. Discussing these things prior to walking down the aisle will ensure that you are both on the same page and will help to prevent future arguments about money. While these discussions are never fun, they are essential to the overall health of your marriage.
Discuss Insurance Options
Insurance is one of the key components of any joint financial plan. The first thing that you need to consider is health insurance. Once you are married, you are likely eligible to be included on each other’s insurance policies. If you both have a policy, you need to discern which one gives you the best benefits and most significant financial advantage. If you plan on having children soon or if you have a mortgage, you should look into life insurance options. Being prepared will fully protect your financial well-being down the road.
Although none of these issues are as fun and exciting as planning your wedding day, it is vital that you engage in these hard discussions. After all, marriage is a financial bond as well as a loving partnership. Talking in depth about financial decisions will help put you on the path to success for your marriage.
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