Marriage -
The Financial Scoop
No one gets married by their accountant. And when love is in
your eyes, opening a joint checking account is the furthest thing from your
mind. But consider this - the lack of a financial plan can become a major cause
of marital stress. Our advice is to open a dialogue with your partner and settle
financial matters before they ever become issues. Consider these questions as a
way to start the ball rolling.
Spend some time together discussing how you each use and view
money and what your financial goals are. With conflict about money cited as one
of the major factors leading to divorce, you and your fiancée should be planning
your financial strategy long before your ceremony. Many experts recommend
newlyweds not merge all their money from the start. It enables both partners to
maintain an independent credit rating. Instead, merge it slowly over time as
your trust and knowledge of your partner increases.
Joint accounts can prove handy for taking care of shared
expenses, like the rent or mortgage, even just the groceries.
How do I add my spouse to my VBSFCU Account?
First contact us. Both of you will need to come in
person to sign some papers. Your partner will need to bring two pieces of
identification from the following list: social insurance card, major credit
card, bank card, driver's license, health insurance card, senior citizen's (OAS)
card, student card, passport, government issued ID, Immigration form IMM
1000 or Immigration form IMM 1442. If the ID the does not state a current
address, they should also bring proof of residence (lease, utility bill, etc.).
Can I get my spouse added to my VBSFCU Credit Card?
You can include your spouse as a co-applicant on your credit card simply by you
and your spouse applying for a joint credit card*. Stop by VBSFCU and fill out
the VISA application. Each spouse may also want to consider whether to
keep one or more credit cards in his or her own name to maintain an independent
credit rating.
*You both must qualify
Get to Know Your Financial Partner
Divide financial tasks so both of you are clear on who’s doing what,
but keep each other informed of what is going on. Olivia Mellan, a Washington
D.C. psychotherapist specializing in money conflict resolution, says that 80% of
the time, women pay the bills and handle the budgeting, while only 12% of women
are involved in investment and tax planning. It’s important to trade
responsibilities regularly, or at least give each other frequent updates, so
that each of you understands the “other side.” Work on making your
financial decisions together. It’s never too early to begin saving for
retirement. Discuss your retirement dreams and financial expectations.
Develop common goals and timelines, so that you can begin to invest
appropriately.
Be sure that you both maintain credit in your own names.
Having your own line of credit is particularly important if you decide to start
your own business or if you become widowed or divorced. Don’t forget to
update your beneficiary designations on insurance policies and retirement
accounts. If you’re changing your name, be sure to file the change with
the Social Security Administration and Department of Motor Vehicles. Also
notify your credit union and creditors.
Health Insurance
If you and your spouse work, and have
employer-sponsored health insurance, you should review, and possibly integrate,
your coverage after marriage. Compare monthly premiums, deductibles,
co-payments for routine and emergency care, participating doctors and hospitals,
and additional coverage provided, including dental, vision care and prescription
drugs, before making any decisions.
Names and/or addresses on important accounts and
documents to ensure accuracy such as:
Your Will
You should each review your wills and be sure that they reflect your new marital
status. If you don't have a will, it is time to create one.
Retirement Plans
Review retirement plans and change beneficiary designations as necessary.
Property Ownership
Look at the title for property you own, as well as establish a plan for future
purchases, such as a home. Keep in mind you and your new spouse can take
advantage of your unified purchasing power.
Prenuptial Agreements
Consider a prenuptial agreement. A prenuptial agreement is a legal
document that specifies the assets a couple brings to a marriage. It
indicates which assets will remain individual and which become joint property,
to what degree future assets will be shared or kept separate after the marriage,
and how assets should be disposed upon death.
Taxes
You will have to decide whether to file your income taxes jointly or separately.
If you or your spouse does not have earned income, consider changing the number
of deductions on your W-4. Learn more about tax efficient investing.
Life insurance
If you have insurance, getting married is an important time to review your life
insurance beneficiaries. If you don't have life insurance, you should consider
acquiring some to reflect your increased responsibilities.
The information above are general suggestions. Please contact
your financial planner for a specific consultation.
