As a newborn couple, be prepared to talk about finances and managing your money together. Whether you completed it now or are planning to take the leap soon, you may be making financial changes in the near future.
Ask your partner these basic questions and talk to your partner about whether you want to merge your bank accounts before or after you say “I do.”
Should you combine your bank accounts?
It’s a big question, but don’t worry: You have options. You might see a shared account as a sign of trust and partnership, but you may also have valid reasons for maintaining separate accounts.
Some newlyweds open a joint account while, at the same time, keeping individual accounts for things like personal purchases and pre-existing debts.
This best-of-both-worlds strategy can make it easier to keep track of shared bills or other family expenses, and it helps couples retain some of their financial independence. You may find it easier to earmark money for emergencies or future savings goals when you have an extra account to hold it.
Remember that you can always integrate more assets later. Recent data shows that the longer a couple stays together, the more likely they are to keep their money in a joint account. Take your time and make the transition gradually.
What assets and debt do you have?
It may seem that you suddenly have more money than your total income, but do you really? Check everyone’s financial situation to make sure you know how much money you actually have to spend.
If you want to successfully budget, save, and plan for the future, you and your spouse should discuss any debts or assets you bring into the marriage, including student loan debt and major purchases.
What future will you build together? You got married to build a future together, right? Start by talking about your dreams and how you can support them with your financial goals. Now is the best time to make important lifestyle decisions, such as: B. Saving for travel, future education or retirement.
Does being married save on taxes?
Is it best for you two to file joint tax returns? Does being married save on taxes? It depends on your circumstances. There are many factors to consider when doing your taxes as a couple. Consult a tax advisor to review the options that may potentially save you on taxes once you are married.
How will your assets be affected?
Most couples combine their assets by opening up joint accounts, but some assets cannot be combined. For instance, accounts like IRAs can’t be joined. But you may be able to make a spousal IRA contribution on behalf of your spouse who doesn’t work or whose income is sufficiently low. In such a case, having a clear idea of which partner can claim which assets can help you establish your contribution eligibility.
Additionally, people with high credit scores often add their spouses to their accounts instead of getting entirely new credit cards.
Before making a huge change, think about the potential benefits of different banking arrangements, and discuss your options thoroughly before making a decision.
