There are probably more weddings planned in the spring than any other season. According to some statistics, the months of May and June have the most weddings.
And if you don’t think that marriage is a ‘big business’,- it is estimated that $72 Billion per year is spent on weddings in the United States (the average cost of a wedding being $20,000).
So, before you plan the big date, there is something less romantic you may consider.
Having a frank discussion with your ‘beloved’ about finances might not be on the list of your wedding planner, but should be on yours.
The discussion about money is particularly important if this is your second (or third, or more) marriage.
I wrote an article about “To Do Before I Do” that covered some of the aspects of things to consider prior to marriage. There is also my article - “The good pre-nup” in my website archives. (www.attorneybarbaradalvano.weebly.com)
I will add a few more hints toward getting your marriage off to a good start. Granted, talking about finances is a difficult topic, particularly with a potential spouse. But it is important to your future life together.
1. Have frank discussions with your spouse-to-be about lifestyle expectations, children, children from prior marriage(s), and finances.
2. Update your will and your estate plan. One idea may be to have an appointment with an estate planning attorney and use that as a ‘platform’ for the questions you both have.
3. Consider a pre-nup, particularly if this is a second marriage. Often, both partners bring to a marriage different financial issues and assets. For those close to retirement, the pre-nup might be useful.
There is also the possibility of post-nup agreements, but such post-nup agreements (similar to a pre-nup, but agreed upon after a marriage) may not be the best option.
(Remember, it is advised that both partners have different legal advisors for the pre-nup.)
4. Talk specifically about debt, including co-signatures either of you may have made on loans and other debt instruments, including college loans. Remember, debt includes credit card debt.
5. If there is a family business, the discussions about finances are critical prior to a marriage.
6. Talk taxes – things will change after marriage, your tax status may change. Make sure both partners do not carry over IRS debt issues in the marriage. If there are liens against property, that should be disclosed.
7. Clean up your credit rating and credit score. If one partner has an extremely low credit score, it could impact things like getting a good future mortgage rate or any loan application.
8. Review specifically your beneficiary forms and pension documents. And if you are changing domicile after marriage - Consider the laws of the state where you will be living with regard to inheritance.
None of the above is as much fun as planning your wedding venue, flowers, and honeymoon.
But planning before marriage could be critical for your future life together.
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