Going into a marriage with different views about finances can spell disaster. Do you know that money is one of the main reasons why couples fight? Financial stability may keep you out of divorce court. That's why you need to know everything about each other's financial situation before you tie the knot. Consider ordering a copy of your credit reports - they will show your current financial situation and money management skills. Different spending habits, heavy debts or regular expensive purchases can cause conflict in your relationship down the road. Read more about the reasons that can ruin your family life and the ways to avoid money-related problems.
Can money buy happiness in marriage? It's possible. According to the latest American surveys, people in higher income households are much more likely to say they are very satisfied with their personal lives than people in lower income households (particularly those earning less than $30,000 per year).
While some spouses draw closer together during difficult financial times, many couples can divorce when hardships occur. Marriages are especially vulnerable during the first five years. So before you say "I do", have a heart-to-heart conversation with your future spouse about money. Here are ten main questions you should ask:
- How many credit cards have you got?
- What are their interest rates and fees?
- Do you have any missed or late payments?
- What is your credit score?
- Can you show me your credit report?
- Do you have any regular "guilty pleasures" (e.g. buying Louis Vuitton bags or going to casinos)?
- What are your financial goals (education, new job, saving expectations, retirement plans, etc.)
- Do you have any assets (property, retirement funds, investments, savings accounts)?
- Do you want to have kids? If so, how are you going to support them?
- Do you have any debts from a previous marriage (child or ex-spouse support obligations)?
If your sweetheart doesn't want to talk with you about personal finances, consider this as an alert. What is he or she hiding from you?
If you discovered that your future spouse has dozens of credit cards, heavy debts, or high finance charge, then you may need a professional assistance of a credit counselor or a financial adviser. Otherwise most part of your income will go towards paying credit card bills.
If you and your sweetheart have different credit scores, you need to decide how you will apply for credit cards and loans in future. Will the spouse with a better FICO score fill out all the applications to get lower interest rates? Or will you open joint accounts and accept higher finance charge to raise the other partner's credit score? The answers on these questions depend on your financial situation and priorities.
If your couple has different spending habits - you are a "saver" and your betrothed is a "spender" - you can have lots of financial compatibility issues down the road. That's why make sure you have ironed out these differences before you agree to stick together. Discuss the spending patterns and find a compromise. For example, you can divide your income into several parts: one for paying off the bills and buying food, one for a rainy day fund, one for apparel or home repair and one for entertainment.
By taking control of your financial destiny, you'll be able to make your dreams about happy family life come true!
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