Newly wed? Here’s what you need to know to stay financially ‘happily ever after’

Spring is here and wedding season is in full swing.

Getting married is an exciting moment in your life. Between the wedding, honeymoon and potentially starting a family with that special someone, the two of you are about to embark on a journey of love, memories and, yes, money management.

It may not be the most romantic topic, but discussing finances with your spouse is important. In fact, according to researcher Sonya Lutter, arguing about money is the top predictor of divorce. Couples who argue about money early in their relationships — regardless of the couple’s income, debt or net worth — were at a greater risk for divorce.

Here are five ways you and your spouse can get off on the right foot when it comes to your money management so you can live happily ever after.

Get organized

It’s likely that you and your spouse use different banks, have different credit cards and have handled your finances separately up until this point. The best first step is to sit down with your spouse and put together a clear picture of your financial situation.

A few questions to answer together are:

▪ Are we going to combine our finances? (If not, how do we plan to stay transparent with one another when it comes to our finances?)

▪ How will bills be paid?

▪ How will large spending decisions be handled?

▪ What type of spending plan or budget do we want to follow?

▪ What assets and liabilities do we have?

The most important part to getting organized is having clear communication between the two of you and being open and honest with one another.

Create financial goals

As you and your spouse begin on this new journey together, take the time to plan out your financial goals. It’s important these goals are decided together and mutually agreed upon. In addition to joint financial goals it’s OK to have separate or individual financial goals.

A few ideas for financial goals are:

▪ Planning to purchase a home.

▪ Taking a trip.

▪ Saving for retirement.

▪ Buying a new car.

▪ Pursuing higher education.

Remember to make these goals measurable. If the goals are easily measurable it’s more likely you will achieve them.

Review your finances regularly

Once you and your spouse have organized your finances and set financial goals it’s important to decide when and where you will review your finances.

Having a designated time and place to do so makes sure you are both prepared and open for the discussion.

Make these financial reviews regular and fun. Plan a financial review date night or try having this check-in over coffee. Remember it’s important to have open communication with one another and to be honest with each other when discussing your finances.

Review your taxes

Now that you and your spouse are officially married, it’s likely you may need to review your tax withholding and filing status because the Married Filing Jointly income tax brackets having higher thresholds than Filing Single.

You should be able to update your withholding and filing status through your employer by completing and submitting a new Form W-4. This form should help you determine the amount of withholding needed for federal and state income taxes.

If you run into any troubles, contact your employer’s human resources department. They should be able to help guide you through this process.

Create an estate plan

Don’t allow estate planning to be intimidating to you or your spouse. Death can be a difficult topic to discuss but it’s important to have a plan in place for the worst-case scenario.

Estate planning doesn’t have to be a complex topic. If you partner with an experienced attorney they can help guide you through this process.

A few things to think through are:

▪ Establishing a will.

▪ Identifying a medical and financial power of attorney.

▪ Updating beneficiary designations on accounts.

▪ Setting an agreed upon time frame for when you will review these documents.

Proper estate planning is important in order to help make things easier for your surviving family members.

As you work through money management conversations with your spouse, remember that the two of you are a team. It’s important to communicate clearly, be open and be honest with one another. These conversations may be tough but they are important to have in order to set yourself up for a happy long-term relationship.

Jack Giardino is a CERTIFIED FINANCIAL PLANNER professional and Co-Director of Public Awareness with the Financial Planning Association of Greater Kansas City. He serves as a Wealth Advisor for Inflection Point Wealth Advice in Overland Park.