Life partners should be on the same page about money We all know couples who fight about money. In fact, you yourself may be in a relationship where money is a source of conflict.
It’s no mystery why these types of conflicts are so common – money allows us to take care of ourselves and our dependents. Managing it requires discipline and planning, but often couples don’t see eye to eye on what that means. When long-term partners share their finances but don’t have the same values and attitudes about money, it’s ripe for conflict. Fortunately, as with most things, clear and open communication can help. Here are four questions to help you have an honest and meaningful conversation with your spouse or partner about money.
No. 1 — How are expenses organized?
If you are soon to be married or cohabiting, it is important to decide how your finances will be combined (total income and savings or savings accounts). different) and who will be responsible for any household expenses. If you’ve been together for a while, your main focus is on making sure you’re living the way you want to date and that there’s an understanding of everything about money. To the extent that you are paying or buying a large item, it should be an amount that is good for both parties.
No. 2 — What is the most important thing about money today?
These may change from time to time, but it is important for a couple to communicate regularly about what is important to them. For example, a young couple may want to decide whether to set aside money to pay for a house. Some may want to prioritize budgeting and vacations. Later in life, couples should think about how they plan to spend their time (and money) in retirement. These are issues that should be discussed frequently to make sure there are no surprises.
Number 3 — What are your long-term goals?
These vary depending on your age and can change, to some extent, throughout your life. As a young couple, setting aside money for higher education (yours or your children’s) can be one of the most important things. Although retirement may be a long way off, the sooner you start saving for that goal, the better. Older people may be focusing on retirement and the condition of their land. Sitting with a financial advisor can be beneficial no matter your age. An advisor will gather input from both parties and come up with a plan to help guide your long-term financial decision making.
No. 4 – Are proper documents written?
For couples who are planning to get married, there may be reasons to consider a prenuptial agreement. He explained how assets would be divided in the event of a divorce. The most important thing is that it restricts the costs related to litigation in the event of a divorce, as the parties have already agreed on how the assets will be divided. For older couples, making sure that the land documents are important. These issues are exacerbated in the case of blended families, as the distribution of assets can be more nuanced. In both cases, seeking appropriate legal guidance is important.
Under the ground
When it comes to money, communication is key, especially since it can be a touchy subject. That’s why talking about it regularly is important. For couples, limiting financial surprises – and it’s longbills or large purchases – can go a long way to building a healthy, team-based system for budgeting and managing money.
Bronwyn L. Martin is a financial advisor and financial advisor at Martin’s Financial Consulting Group, the financial advisory practice of Ameriprise Financial Services LLC. at Kennett Square in Havre de Grace, Md. He is an expert in investment based financial planning and active wealth management strategies and has been practicing for over 22 years. To contact him: www.ameripriseadvisors.com/bronwyn.x.martin.