If you are getting married later on in your life, you will have a few things to sort through financially. You both have made previous decisions that affect your finances now. And you will need to think about retirement, assets, housing, and other aspects. There are a few things to talk about with your new or soon-to-be spouse.
Think About Estate Planning
It is critical to organize your property in case one of you passes away. Estate planning is even more important if one or both of you have kids from a previous relationship. They should still receive what is theirs, even if the new spouse outlives their parent. You can receive advice from financial planners, accountants, and other professionals, especially if you create a prenuptial agreement.
Typically, income and assets are considered both of yours, even if only one person holds them. If you want to divide things up, your prenuptial agreement will help you do so. While you are planning this part of your finances, consider doing some end-of-life planning as well. You can review a checklist for final planning to get you started on this important step.
Combining Your Finances
Older people can be more set in their ways, and that includes the way money is managed. And each might have more assets than a younger couple. These factors can make financial management somewhat tricky. Since financial issues are one of the top reasons for divorce, talk about finances before getting remarried so you each have realistic expectations. The same is true if there are minor children from another marriage or relationship. One spouse may need to pay child support.
You might want to review each other’s credit histories, scores, and bank account transactions together to make sure there are no surprises. It can also be helpful to review credit card transactions with each other so you have a starting point for conversation. You can determine how much debt each person has and come up with a plan for tackling it together.
It is often a good idea to agree upon a budget before getting married. That way, you can figure out how to share income and living expenses. Having a joint account and giving each other access to each other’s accounts after marriage can help you both remain transparent with each other. Each person will have different ways of investing, so you should determine how much to invest and whether these should be conservative or aggressive. Then you can create a retirement plan if you have not retired yet. And you can think about how much you want to have on hand when it comes to savings.
Update Your Tax Information
It’s a good idea to make sure that the names on your tax returns are the same as the ones you have registered with the Social Security Administration. Otherwise, you might see delays in your tax refunds. You should think about if you should file jointly as a married couple or to file separately. You should take care of any tax problems you had with any previous spouses before you get married again.