Today, I’d like to CONCLUDE our video series on the important topic of “Should You Merge Finances After Marriage?“
And let’s start with discussing…
How to actually merge one’s finances: The best way to merge your finances is to just do it. Everything that can be merged should be merged. This obviously excludes accounts, like retirement accounts, that must be in the owner’s name. You may also want to speak to your estate planning attorney about the best way to title certain accounts for planning purposes. Beyond that, merge your finances and start working together as a team. Your net-worth will likely benefit from this decision.
Next is how to handle financial disagreements: If you are having budgeting problems, disagreements on how to allocate your money, or one person is a spendthrift, you should have a conversation about how to get control of your finances.
If there seems to be a financial impasse, instead of getting angry, hire an impartial third party to help. Throughout my career, I’ve been asked to play the bad guy to help couples get control over their finances. Each spouse feels less emotional when discussing these issues with me than with each other. I can also offer objective advice without all the baggage that may come from interacting with a family member. At the end of the day, it’s better that a couple gets mad at me and my advice than be upset with each other.
There may also be unique situations for each couple, like the ones I mentioned at the beginning of this video series. In those situations, instead of implementing generic advice it may be helpful to hire a financial advisor to offer customized financial solutions.
Lastly, I’d like to share a Recipe for a financially successful household: I recommend that couples have regularly scheduled meetings to discuss their finances. They don’t always need to be serious meetings discussing difficult topics. In fact, most of these meetings should be exciting. Each spouse can express their vision for how they want to use their money to enhance their lives together. Regular communication about financial matters will help ensure that a couple is on the same page and will allow them to navigate the inevitable financial speedbumps along the way.
Setting a specific time to discuss these matters is great. Practically, in the chaos of everyday life, having regular meetings may not be so easy. Agreeing, at minimum, to spend a few minutes and discuss matters as they arise or when something is top of mind is a good policy.
When married couples communicate openly about their finances and work in unison to achieve their financial goals, it will help lead to household harmony and financial success.