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Money
and Marriage
Recent research has revealed some fundamental differences in the way men and women typically
invest.¹This may explain why an estimated 30% of married couples have never
discussed their finances.²
Instead of
risking a disagreement, many couples leave money matters in the hands of one
partner, but a sudden disability, death, or divorce could leave the uninformed
spouse in a difficult spot.
Even if you and
your spouse are better off keeping financial discussions to a minimum, keep
these basic financial issues in mind.
 | People
and papers — Both spouses should know the contents and
location of estate planning documents such as a will, power of attorney,
letter of instruction, and trusts. Financial records and contact information
for the couple's legal, financial, and tax advisors also should be readily
accessible to both husband and wife.
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| Credit
cards and loans — When people marry, their debts and
credit scores often become common property, making both parties responsible
for outstanding liabilities. Couples who discuss their credit situation can
work together to resolve any issues. And if one spouse passes away
unexpectedly, the other can continue to make payments on time and avoid fees
and penalties.
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| Family
budget — Keeping both partners apprised of how much money
is coming in and going out each month — and where it is being spent —
can help reduce redundancies, increase savings, and ensure that bills are
paid regularly.
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| Financial
goals — Making sure that both spouses are working toward
the same goals can add efficiency and focus to a couple's financial plan.
Whether saving for a second home, early retirement, or a child's education,
it's important for a couple to know how close they are to reaching their
goals and what it will take to get there. |
It's easy to
disagree about money. Still, keeping both you and your spouse up to speed on the
family's financial issues can help ensure that both of you are moving in the
same direction.
1)
Research, August 2003
2) AARP, June 2002
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