5 financial things you must consider before marriage
Getting married is an enormous milestone in anyone’s life. However, there are many things to consider before tying the knot with your loved one. Financial disagreements have the power to negatively affect any relationship, so it’s best to talk about money and issues surrounding money before you get married.
Things to consider:
Do you want to have children?
This can be considered the most important decision to make before getting married. If you haven’t discussed this already with your partner now is the time. In addition to being a big time and emotional commitment, children are also a financial commitment. Therefore, it is important that you and your partner both are on the same page.
Are you going to rent or buy?
This could be the second most important financial decision to be made before getting married. Owning a house can be a big investment, but it isn’t the right decision for everyone. To own a house, you’ll need an initial investment to pay as the down payment and the balance can be paid monthly via a mortgage. Talking about this before the wedding could result in avoiding future conflict.
Debt and savings!
Make sure that you both disclose your debt ahead of time and come up with a plan for how you are going to pay off that debt. It’s crucial that you both agree on savings goals. Figure out if you want to pay off the debt first, how much you want to save before retirement, what other savings you want to focus on, and come up with a specific amount that you both have to save every month.
Who will manage the money?
Figuring out who will oversee the day to day finances can save you and your partner from future conflicts. Everyone doesn’t have the same money managing skills; therefore, figure out who is best at it and let that person manage the household finances.
What will happen in case of separation?
Although this may not be the most pleasant topic to talk about with the person you are going to get married to, nowadays it is an important topic to discuss. Knowing what would happen in case of a divorce would result in the relationship ending in better terms than it would if not otherwise. This could be even more beneficial if there are children involved.