When you get married you really are marrying not only the person next to you, but also all of their debt and credit history. So you really want to have some serious conversations before you get married as to how your merger will benefit you both.
1. Tell Each Other Everything: Tell each other every little dirty financial secret – student loans not paid – any bankruptcies, etc. This will let you both know exactly what you are looking at.
2. Decide How Many Accounts: Many couples put all of their money in one account so that they can share everything. However, for some couples it may be better to have a main account, then each person have their own account to spend what they would like without the other partner worrying about their spending habits.
3. Tax Risks: There are a lot of breaks that you can get by filing jointly. However, if your partner has bad credit, once you file jointly you are just as liable for that debt as they are. In very rare cases you can file not to be, but the IRS very rarely grants those wishes.
4. List All Property and Monies: Make a list of what each of you own, as well as what you own jointly. This is a particularly great exercise when you are making out your wills. This way you can both decide who gets what after you die of your joint holdings, as well as being able to make any decisions as to what to do with your own stuff.
5. Know Your 401(k): If you know what each of you has already it will help to make a plan for the remainder of your financial planning. This will also let you know where you are weak, and where you are strong. ■
SIGN UP
