Getting married is one of the most exciting milestones in life! However, aside from the fun, there are a lot of responsibilities to think about.
For example:
You may have to think about how you will both prepare your finances, especially now that you share your life with someone else.
Have you ever thought about your financial future with your partner?
When you get married, it’s inevitable that there are changes that can occur in your life, and your finances are not exempt from this.
From the moment you say “I do” and you become a married couple, any property, savings or debt you may have will be combined with your partner’s finances and assets under the current law.
It’s important to consider learning how to manage your finances together and be open to talking about your financial circumstances with each other. It may be worthwhile having a conversation with your partner before you get married to fully disclose with each other your assets, liabilities and credit reports.
You can then create a plan of how you would like to manage your finances together and what works for the both of you.
As a married couple, it’s important to be transparent about your finances and be open to discussing how you will spend your money.
It can be beneficial for both of you to be involved in planning your expenses so you can know how much money you will have left to spend. With this, you can decide things together, like if you can splurge on a vacation or save to buy a family home.
Managing your finances together usually entails discussing the purchases you make and the amount of money you plan to spend. Talking about these things will make you less likely to overspend and make your finances more stable.
After you get married, your situation will change. For example, you may want to include your spouse in your will. This is important because if something happens to you and your spouse, your family will still be able to receive the things that you worked hard to earn.
It’s important to note, that your Will needs to be updated after marriage otherwise it may not be valid. If you need further advice, you may want to reach out to a professional, such as a solicitor who can update your will or provide you with advice when it comes to your will.
You may want to consider updating your listed beneficiary in your super fund. That way if anything were to happen to you, your spouse will receive your retirement savings.
You may also want to look at how you can grow your super savings together and reap the benefits from either making spouse Contributions.
Now that you are married, you may need to update your insurance policies to account for the extra living expenses.
If you have a mortgage with your partner or are planning to buy a house or have a family, you may need to increase the benefit of your policy to ensure your partner and family are protected.
Now that you are already a couple, creating a budget together will allow you to be sure that you can reach your shared financial goals, especially if you plan to buy a home soon.
To create a budget, it’s important to know how much you each have to spend on your expenses. You can learn this by listing down all your shared expenses, including the monthly bills and your own personal spending habits.
You can come up with a budget together that won’t limit what you both what to spend your money on. It may mean there will need to be compromises along the way to ensure you are both still on track to achieving your shared financial goals.
Sometimes, your spouse might have a different idea about spending money than you. If this happens, it’s important to communicate your needs and listen to your partners also.
Create better financial decisions with your spouse by partnering with us at Poole Advisory. We can help you with cash flow management, wealth creation, wealth protection and many more through our financial planning services.
Book an appointment and start your future today!
References:
This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns
Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917
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