Six Financial Moves You Need to Make Once You Tie the Knot
- April 23, 2019
- by Ashley Chorpenning
First comes love, then comes marriage, then comes talking about your finances? That’s right. Now that you’re married, finances will play a major role in your daily lives. Here are 6 financial moves you need to make once you tie the knot.
Determine how to merge your finances
Once you get married, you will need to determine the best way to merge your finances. You should review all of your accounts and assets and decide if it makes sense to combine your finances or not.
If you plan to equally share financial responsibilities and manage money in a similar fashion, it may be beneficial to merge all of your accounts. If one partner already owns a home and you are living in it together, consider adding the other person to the title.
On the contrary, if you and your partner have different spending habits and perspectives on how to manage your money, it may be a good idea to keep your finances separated. You may want to slowly merge your finances over time. This way you can gradually adapt and find what works best for you as a couple.
You and your partner will also want to establish early on what each person is financially bringing to the relationship. This may be a good time to review any debt, savings, investment accounts, and other financial responsibilities outside the relationship. The more transparent you can be with your partner, the easier it will be to combine your finances.
Create money goals
From purchasing a home to building your dream of retiring in a faraway country, you and your partner will need to create joint goals. Planning your future is a great way to help you achieve your financial objectives. Sit down with your spouse and determine some common goals you can begin working toward as a couple.
After formulating your joint aspirations, you will want to prioritize your financial goals. You may want to stick savings at the top of your goal list. It’s easy to only save what’s left after your bills but you should start to consider increasing your saving reserves to assist in additional costs that you will incur as a couple. Work together and determine how you can make all of your dreams come true.
Develop a budget
Once you have prioritized your goals, create a budget to help you achieve your desires. If you don’t know what’s coming in and going out, you won’t be able to put money aside for your goals. Include in your budget who will pay for certain bills and what amounts you can contribute toward savings.
You will want to review your budget with your partner throughout the year. This will help you evaluate your progress and where you may need to make adjustments.
Update beneficiary information on all accounts
Who are your beneficiaries on your retirement accounts and insurance policies? If you’re unsure, this is a great time to review all of you beneficiaries. Most likely, you will want your spouse to be your primary beneficiary on all of you accounts.
Evaluate your insurance needs
Shopping for insurance can be a painful process, but it’s an important finance related move to make once you get married. You will need to evaluate your car insurance, disability, and life insurance policies to find the best fit for your new marital status.
If you don’t already have a life insurance policy, this is a good time to consider one. A life insurance policy will help minimize the financial burden your spouse would incur if something happens to you.
Update your name for all accounts and Social Security
If you’re changing your name, you will need to alert almost every organization your name is associated with. You will need to contact the DMV, the Social Security Administration, your doctor, and more. If you have a membership or an account with an organization, you will want to fill out the necessary paperwork to change your name on all of your accounts.
It may also be a good idea to change your allowances on your W-4. You don’t want to end up paying more in taxes if you change your filing status.
The Bottom Line
Communication is key to successfully managing your finances together. That’s why it’s important to make sure you and your partner remain on the same page financially. Take the time to review your finances and form common goals.
Taking the time to discuss your finances will help minimize financial conflict. You may also want to consider partnering with a financial advisor or planner. A financial advisor can help you navigate your financial journey. They can help you address complex financial topics such as estate planning and tax strategies.
Merging your life with another individual requires you to merge your finances as well. Use these financial moves to get you on the right track toward an abundant future.