Credit
Although it might not be the most romantic conversation, talking about your finances and your plans for money management is absolutely crucial before deciding to get married. Unfortunately, no matter how compatible you are, conflict over money is one of the leading causes of divorce. Before you make the commitment to spend the rest of your life together, you will want to make sure that you are on the same page and that your attitudes towards money match up.
Here are a few of the most important financial discussions that you should have with your partner before tying the knot:
Your Financial Past
Sit down with your partner and review your credit history and debt together. Remember that once you are married, your partner’s bad credit score and debt becomes yours as well. Have they been smart with their money, or are they still paying off a ridiculous student loan with no plan for the future? You don’t want this kind of information to be a surprise after you are already married. If you know in advance that one of you has a bad credit rating, you can leave that name off the mortgage application so that you will get a better rate.
Your Goals and Dreams
What if you dream of traveling the world for several years and working abroad, and your partner dreams about buying a house right away and settling down? What if your partner loves to spend on the finer things in life and you value a life of frugality and simplicity? If you can be open and honest about your attitudes towards money and your goals and dreams at the very beginning of the relationship, you are more likely to be able to find a compromise that makes everyone happy.
Your Emergency Fund
Another important thing to talk about with your future spouse is an emergency fund, which will keep you afloat in an unexpected situation such as being laid off or injured. You can work together to build up a savings fund that will protect you from going into debt in these situations, but you need to both have that goal in mind.
Roles and Responsibilities
Before you start having children, it’s important to discuss how you will manage caring for them. Who will be in charge of taking care of the children, and who will be the main income earner? Will you share these responsibilities equally? How much time will you take off work for maternity or paternity leave? If you are clear on your family roles from the start, there will be no confusion or resentment later on.
These are just a few of the most crucial conversations all couples should have before getting married. Once you are open and honest about your financial attitudes, you can work together to create the lifestyle of your dreams.
This article was written by Steve Harmisson on behalf of Ulster Bank, for more information on the latest current accounts see the Ulster Bank website for more details.