Making Sure Your “I Do” Doesn’t Turn into “I Didn’t Know”
Marriage changes things. There are decisions to make, compromises to reach, and families to bring together. With all the excitement and joy of an upcoming wedding, it can be easy to overlook the many financial responsibilities that you and your spouse will confront. Taking care of certain financial matters early can help you start your married life on the right foot.Marriage changes things.
Wedding and honeymoon expenses.
Weddings can be expensive. When you and your spouse return from your honeymoon, sit down and discuss a plan to pay off any remaining expenses for your wedding. Try to pick a clear timeframe and stick with it.
Changing beneficiaries.
It’s important to dig out any old insurance policies and paperwork for your 401(K) and/or other retirement and investment plans. Then, check the accuracy of the information and update your contact card beneficiary information if necessary.
Bank accounts.
You and your spouse may choose to consolidate your finances. Review the terms of your existing bank accounts. Should you keep them? Close them? Open a joint account at the same bank? These are all questions you should bear in mind when planning your new life together.
Health and auto insurance.
Assess your existing health and auto insurance. In many cases, obtaining joint coverage will save you and your spouse a significant amount of money.
Name changes.
If you or your spouse plan to change a last name, make sure it’s done on your credit cards, tax forms, driver’s license, passport, Social Security card, voter registration card, as well as on bank accounts and insurance policies.
Homeowners’ or renters’ insurance.
If you haven’t already done so, make sure you’ve protected your home and other valuables with homeowners’ or renters’ insurance. In addition, you may want to extend coverage to the wedding gifts you received, and for your engagement and wedding rings.
Student loans and credit card debts.
Assess how much money you and your spouse owe. Consolidating assets can also mean consolidating liabilities. Plan a budget to manage any debts you and your spouse may have.
Mortgages and other loans.
Always make sure you’ve saved enough so that your mortgage, car payments, and/or other loan payments fit into your household budget.
Life insurance policies.
Getting married greatly increases your need for life insurance. Make sure both you and your spouse have appropriate coverage.
In preparing for your financial future as a married couple, you will have to reevaluate some old things, prepare for some new things, and maybe even return a few borrowed things. But, being proactive about your finances may help you avoid dealing with money-related wedding blues.
About the Author: Tim Mahoney
