Beyond the confessions of love, exchanging oaths, and kisses ceiling promises, finances play a huge role in any marriage. And, unfortunately, financial issues have been one of the main trouble areas in countless marriages. According to some experts, financial problems are one of the leading causes of ruined marriages in America alone. Many spouses have admitted to lying to their partners about their financial situations either before or during their marriage, while others never seem to agree to anything related to finances. So, are you planning to get married very soon? Congratulations! But here are some financial considerations you need to make.
Ensure that you protect your assets
The word prenup may not be the most romantic in the dictionary, but it plays a massive role in ensuring that you’re not left with nothing if your fairytale comes crashing down. Prenups are particularly important when both parties have already accumulated a substantial amount of wealth or assets on their own before getting married. The same plays a considerable role when it comes to family businesses, an expected inheritance, or family wealth. Although most people may not want to consider the possibility of divorce before getting married, the numbers show that you should. For example, in America alone, there is one divorce every 13 seconds, according to experts. That means there are two million divorces every year, and most of them end with crippling financial consequences. Therefore, it is essential to ensure that you consider the possibility of creating an easy divorce process through an uncontested divorce to help prevent any financial ruin.
Learn about your partner’s financial present and past
As mentioned earlier, many people are guilty of hiding their actual financial status from their spouses. That is why it is essential to know your partner’s financial past and present before agreeing to tie the knot. Take the time to review significant financial status together. This should include business, education, and home loans, as well as significant credit card balances. The last thing you want is to be caught off guard by some financial chains after you have already committed yourself through marriage.
Budgets and financial planning
Next, take the time to talk about budgets and financial plannings for your future together. Before you get married, it is essential to lay down the ‘rules’ of your financial or spending habits. Set limits on spending, make all the necessary financial compromises, and discuss who takes on which financial responsibilities before you get married. Create boundaries for every spending category; for example, how much to spend on groceries, rent, entertainment, fuel, etc. Doing this will help you avoid future misunderstandings.
It may sound like you have a lot of time to consider your retirement plans, but it is essential to consider them along with your budget goals. The earlier you start saving for your retirement, the better. Therefore, take the time to plan what percentage of your monthly revenue will go into some form of saving plan for your retirement.