Before all the wedding planning and guest lists and honeymoon booking there is one major decision … whether or not to tie the knot. Getting married is one of the “big” decisions in life. Two people coming together with a host of unique characteristics and different life experiences as well as separate bank accounts and financial positions is expected. What isn’t always expected are money issues that can surface after the big day. In a perfect world, both halves of a couple share the same values and goals when it comes to finances and money. In real life, it doesn’t always work that way.
To help smooth the way to a financially harmonious union, it is both practical and prudent to begin by pulling the individual areas of your finances together as one with transparency and disclosure. This doesn’t necessarily mean a merger; however laying it all on the table prior to the wedding day provides the foundation to move forward with future financial decisions.
Here are 5 Tips to help avoid post wedding day financial jitters:
- Emphasize partnership and avoid the power struggle
- Compare and contrast financial preferences focusing on understanding
- Create a budget strategy together that prioritizes financial objectives
- Dedicate resources to implement highest priority financial obligations, goals and dreams
- Acknowledge the need to be flexible by balancing your deliberate strategy with emergent opportunities and challenges
While combining finances with a partner can be a touchy process, the tips provided are foundational for open communication. And they provide direction for those pursuing a transition from individual financial decision making to joint management of finances.
Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.