Marriage and Money – Planning Your New Financial Life Together

Money and Marriage - Complete Controller

Marriage opens the doors to a new life. Sure, maybe money and finances are not the most romantic topics you want to bring to the dinner table. However, it should not be avoided. Let us be honest. One of life’s most significant expenses is a wedding that binds a couple together and makes lifelong commitments.

Couples who trust their spouses or partners with money matters typically feel more secure and financially content with gratitude. On the contrary, issues and arguments about money matters harm many relationships. Most couples fight about finances twice as much as they quarrel about their sex life. Issues related to money are the leading cause of stress in relationships. Almost 60% of divorces were finalized due to financial arguments between couples, making financial disputes the primary indicator of divorces. It is better to plan and put your heads together when it comes to money and finances in the long run. Check out America's Best Bookkeepers

Be clear about your assets and liabilities

Couples should opt for bookkeeping their assets and liabilities and controlling their expenditures as soon as they plan to marry each other. The beautiful journey of love and romance thereby puts you in a new financial life. Therefore, it is obligatory to be aware of the upcoming financial dilemma in your life. The complications of possessions, properties, and debts can brutally damage a relationship. So, be clear about all sources of income and earnings, spending habits, financial goals, and budgets with each other. Being honest about finances enhances a couple’s trust. Clarification of such finances also prevents a great deal of shame and fear in the future.

Share your family history

In many ways, your family background and upbringing demonstrate how you will handle your new financial life upon marriage. Therefore, couples should discuss their family history of finances beforehand; how they spend their allowances, the money etiquette they have learned from their parents, their budgeting priorities, and spending habits. The more you know about each other and your preferences, the better understanding you will have regarding personal and financial matters that ultimately help strengthen the trust among one another. Check out America's Best Bookkeepers

Joint vs. separate accounts

Some couples prefer having open, joint accounts and pooling all their earnings into that account, while others prefer to keep their income discrete. However, it is better if couples set up a joint account for shared expenses such as groceries, utilities, house rent or home mortgage payments, and children’s education. And, if you prefer, you can keep the extra money separate for your expenditures or saving purposes. Again, the more open and honest you are, the more successful your relationship will be.

Be flexible in sharing expenses

When it comes to sharing family expenses, a couple must be flexible with their new financial life and onward. This is because one spouse may be earning much lower than the other and, by distributing equal expenses, you will be seen as equals in the relationship. Financial stress can spoil a relationship. It is best if it is a shared burden rather than one person struggling to get by.

Sensible sharing of expenses via a joint account

When one spouse has a habit of overspending money on frivolous purchases, it can cause conflict in your new life together. To ease such tension in a marriage, decide on a monthly figure that each partner can spend freely at their discretion, without being questioned about the expenses. Simply agree to consult each other on significant transactions to avoid further stress. For such a case, $154 is an ideal amount that most couples agree upon to spend without informing one another. Anything over that amount should be discussed before purchasing. Check out America's Best Bookkeepers

Take an early look at each other’s taxes

When a couple has similar earnings, one might owe more tax in comparison to the other at the start of their marriage. The opposite can happen when one earns much lower than the other. Therefore, sort out tax issues and update your W-2 withholding forms as soon as possible. 

Pay off debt together

Although your new financial life comes with more responsibility, one cannot automatically owe their spouse’s debt right from the start of their marriage. Even then, what he or she owes will still affect your family budget and life choices. Therefore, aim to tackle such debt together simply as a team and make reducing debt your priority. If there are multiple loans, begin with the obligation carrying the highest interest rate first to reduce the overall interest you both pay.

Team up to save

It is much less expensive to maintain household finances as a couple rather than living separately. Paying less on rent or mortgage is just one of many smart ways a couple can opt for saving more. Car insurers, home mortgage companies, and facilities like gyms and clubs usually offer better deals at reasonable costs when you sign up together. In addition, there is no need to have multiple Amazon or Netflix accounts when you have already started your new financial life, the first chapter of your marriage.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers