Financial Steps to Take Once You're Married in 2023
NEW YORK, February 10, 2023 (Newswire.com) - iQuanti: Getting married is an exciting time, but it also means taking on new financial responsibilities. Here are seven important steps to take once you're married in 2023:
1. Discuss personal finances first
The most critical piece to ensuring your marriage is successful is to start with open communication about your finances. Talk with your partner about your current financial situation and your finance-related goals for the future. Ask them to do the same and ensure you're both on the same page.
Some questions to consider:
- Do we want kids? How will we pay for their education?
- Do we want to own a home or rent for the foreseeable future?
- How much debt do we each have? How critical is it for us to get out of debt quickly?
- How much savings do we feel we need? Is there an amount we'd consider "too low" to be comfortable? How will we each contribute to the savings?
- What are our retirement goals?
- What investments do we have, and how comfortable are we with taking risks in the stock market?
- What are our credit scores? Do we need to make it a priority for one or both of us to improve it? (This is especially critical as your goals for marriage and credit scores can either work in harmony or make your home life stressful very quickly.)
2. Decide if you'll open joint accounts or keep your finances separate
Traditionally married couples would combine their finances into joint accounts. This is changing as more couples earn dual incomes to save for their individual and combined goals. Joint accounts can be beneficial, but only if both partners are comfortable with the arrangement. If you're one of these couples, it's important to have open and honest conversations about the arrangement.
If you choose to separate your finances, create a budget for each person and discuss spending regularly. This way, you'll stay accountable and avoid any financial surprises down the road.
3. Change over your beneficiary information
If you have any life insurance, retirement plans, or other assets that will benefit your partner after you die, it's important to change these beneficiary designations as soon as possible. By doing this, your partner will be the primary beneficiary of these assets, and they'll be able to access them without legal complications.
4. Create a budget and stick to it
A budget is essential for anyone looking to live a financially successful life. Whether married or not, creating and sticking to a budget is vital for your short-term and long-term goals. Creating a budget can be simple - just take a look at your expenses over the past three months and divide them into categories (food, housing, transportation, etc.). Once you have a good idea of where your money is going each month, you can start making adjustments to ensure you're always spending within your means.
5. Discuss asset ownership and make the necessary changes
If you and your spouse own assets, such as a home or car, you should consider how ownership will be handled once you're legally married. Some couples will add their spouse as a co-owner, while others opt to keep assets separate. Whichever you decide to do, it's essential you and your spouse are on the same page so that there aren't any feelings of resentment that come up later.
6. Update your tax withholding
If you're a W-2 employee, consider updating your tax withholding status with your payroll department now that you'll be filing jointly.
7. Get a financial review
Sitting down together and getting a thorough financial review will help you identify areas where you may be overspending or under-investing and make necessary changes so you two are on track for your long-term goals. A financial advisor can also help you create a budget and assess your credit score, so you know where you and your partner stand.
The bottom line
By following these simple tips, you and your spouse will be better positioned to achieve your goals together and ensure your marriage is long and happy.
Source: iQuanti
