Getting married is a huge commitment, and will affect all areas of your life, particularly your finances. It’s no question that money is a sensitive issue and that many problems couples face are cash-related. The Wall Street Journal recently highlighted some of the finance blunders newlywed couples tend to make. To avoid making these mistakes, make sure you are aware of them
Not Being Honest About Money
Tackling Debt Alone
Many couples focus on their individual debts and don’t tackle them together, which is a big blunder, says Walsh. Try to tackle the loan with the higher interest rate together, before moving on to the lower interest debts.
Withholding Insufficient Amount of Tax
You might want to consider consulting an accountant for a tax projection of your finances even if you’re filing separately or jointly. This way, you won’t have any unpleasant surprises such as being subjected to penalties, which may trigger arguments.
Being Ill-Prepared for Worst Case Situations
Don’t let the honeymoon phase take over the realities. Prepare for the worst so you won’t have to deal with sorting out messy finances when you’re grieving. Make sure that your partner knows the locations of important documents and keep them in the know about important decisions such as how much they need for retirement.
If you’re still hesitating about having open conversations with your spouse about money, take heed from Carol Ross Joynt’s story. Former Larry King Live producer Joynt cited trust as one of the reasons why money was never discussed. After Joynt’s husband passed away from pneumonia, she was saddled with a $3 million bill from the IRS.