Engagement is a busy time and requires a lot of planning, not only for the wedding but also for planning a financial life together. Therefore, it is crucial not to underestimate the need for a joint financial plan. According to a Ramsey Solutions Study, the larger the debt of a couple the more likely they were to fight about money. Therefore, the surest way to avoid such conflicts is to put a plan in place before the wedding. You can use this article as a general marriage planning guide. For specific information on how to plan for your marriage in Iowa, consult the experienced specialists in our Des Moines office for professional prenuptial financial planning advice.
Each of you should thoroughly assess your financial history to determine both what assets and burdens you bring to the economic partnership. The best way to do this is to get your current credit report. Obtaining your current credit report is the best way to accomplish this. You are entitled to one free report per year from each of the three major credit bureaus. You can find more information at www.annualcreditreport.com. Your report will allow you to see clearly how your financial past is influencing your current picture and give you the opportunity to plan to resolve any issues that might impede progress toward your financial goals. Although you will not be responsible for your future spouse's past credit and debt issues, they will influence your ability to access joint credit. You should also take stock of the assets and liabilities you have accumulated to date.
Look at your current income and expenses and how you both manage them. Do you follow a budget, or do you spend what you want without giving it much thought? How much of your income do you spend on necessities, and how much is discretionary? How do you track what you spend? Do you and your potential spouse handle money differently? How do you organize your documents? What types of bank accounts do you have, and what fees are associated with them? You will want to reach agreements about how to budget, track finances, and organize your accounts.
What types of insurance and employee benefits do you have? Compare health insurance plans and assess the costs and benefits of each. Do you have retirement plans? Understand the specific characteristics of each, including matching contributions, investment options, and loan provisions.
After you understand your past and current financial picture, you can effectively plan for the future. Here are some concrete ways you can do that:
Get on track to realizing your shared dreams by contacting our Des Moines office to discuss prenuptial financial planning with one of our experts.
Tax and accounting services provided through Boelman Shaw & Company, LLC. Advisory services provided through BSC Capital Partners, LLC a state of Iowa registered investment advisor.
Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.