The university gang is getting back together again this weekend for our buddy Pete’s wedding. As a tribute to Peter and his soon-to-be wife, Zainab, I thought I would write about some tips to help ensure their financial bliss together as a couple. Money has become a subject most couples tend to avoid, but addressing it head-on can help you and your spouse to get on the same page, so that you can reach your financial goals together – happily, till death do you part.

 

Discuss Your Financial Goals
It is important that you are both on the same page and are working towards the same goals. In addition to discussing your financial goals, you should discuss your spending habits and attitudes towards money. If there are major differences, determine how they will be resolved. It can also be helpful to develop a budget together as a couple, which can help you assess where your money is going, spot any problem areas, and keep you on track to achieving your long-term goals.

 

Single or Joint Accounts?
Couples often have trouble deciding whether they should pool their money together or keep separate accounts. Joint accounts will prove handy for taking care of shared expenses, like the mortgage or even just the groceries. Even so, many experts recommend that each spouse maintain a separate account in his or her own name to have their own spending money and maintain some independence.

 

Sharing the Plastic
Some experts don’t recommend that couples share credit cards, however, it is often more practical to track expenses on one card. Having separate credit cards, in addition to a joint one, enables both partners to continue to maintain their independent credit rating.

 

Marriage Contracts (ahem, Prenups)
With so many individuals getting married at a later stage in their professional lives, many couples come into the marriage as more established individuals with a larger asset base that they may wish to protect. While negotiating a prenup can be trying, it can also be an opportunity for couples to examine how they expect to manage their financial affairs, to make appropriate financial plans, and to ensure that they are on the same page. It can also save future heartache – looking at the realistic odds, the divorce rate in Canada is approximately 41% before the 30th year of marriage.

 

The Golden Years
Each spouse should consider a strategy to build up their registered retirement portfolio. Ultimately you will be sharing in the retirement income that you both accumulate, so it is important that you both take the time to discuss how you wish to approach this and take advantage of any tax advantages or income-splitting opportunities along the way. Read more about these strategies here.

 

Planning for the Unexpected
Emotions aside, as soon as you become married, it financially matters to your spouse if you die. Everyone who enjoys good health hopes it will last for a lifetime - but sometimes life throws you a curveball. While insurance can’t prevent that from happening, it can help you cope and plan for the unexpected. It is important that you analyze your situation and answer questions such as: How much insurance do I need? If I had died yesterday, would I have left sufficient assets to provide for my family? Which family members or business partners should be insured?

 

The Real Secret: Communication
If couples discuss these issues before getting married and take the time to regularly communicate about money, it can save them many headaches in the long run. As the Greek Philosopher Socrates once said, “By all means marry. If you get a good [spouse], you’ll be happy. If you get a bad one, you’ll become a philosopher. ”