Let’s Talk About Cents, Baby
When entering a serious relationship, there are so many things to know besides favorite color and favorite food. There are important things like taste in music and whether you root for the same sports teams. This can be critical!
Besides your partner’s past health history (cue George Michael), it’s important to talk about money. Yes, that taboo subject that so many couples fight about and the cause of countless divorces. Knowing your partner’s financial habits and mindsets can be vital to long term relationship success.
Now, your partner is not to arrive with a credit score tattooed to their forehead, so this needs to be a real conversation before you join forces so that you know what you are getting into. .That attractive person may not be so sexy on paper if they have bad credit, and that can impact YOUR financial future.
Premarital counseling sessions often focus on subjects like faith, whether you wish to have children, and household chore division. This can be a happy time when you might find yourself gleefully agreeing to mow the lawn and take out the trash and cook 3 nights per week. But what about the bills? What about the credit card interest? What about the defaulted loan and past bankruptcy?
If you have been in a previous relationship, you may be a little less wide-eyed, but still can make some mistakes. You might be concerned about outstanding obligations such as child support, alimony, mortgage debt, and the like.
Who are the beneficiaries on life insurance policies? Is there life insurance at all? There is so much to cover!
No matter your age or stage or if marriage or a domestic partnership is in the works, a financial advisor can help start the conversation, delving into the difficult questions, serving as a mediator.
A financial plan can be an excellent gift for the couples in your life to provide them with a road map to navigate the course ahead (a signed financial agreement is required to be signed by the couple). Towels wear out. Dishes break. Money lasts (if you do it right).
The opinions expressed are solely those of the author. Seek advice from a qualified professional before taking any action regarding your finances.