Just tied the knot? Or getting ready for the big day? Well, no matter the situation, you are about to take the next step with your partner and should probably start thinking about next steps for your financial future.
Below we will list some newlywed topics to think about when taking those next steps with your significant other.
- Changing Your Name
Changing your name is a big step. But whatever you decide, you’ll need to make your new name legal as one of the first tasks of married life. If you do decide to change your name, it’s important hen changing your name,
2. Combining Your Money
Once you’ve taken care of any necessary name changes, it’s time to make some decisions about how your new household will merge and manage finances. It is important to communicate to understand who will be assuming responsibility for certain things and who will be contributing to the finances.
3. Think About Combining Insurance Plans
When discussing merging finances, remember insurance. Now that you are married, consider adding your spouse to your insurance plan to make it cheaper for the both of you.
4. Deicide Who Your Beneficiaries Are
Now that you are married, you probably will want to update the beneficiaries on all of your accounts, such as 401(K)’s, IRA’s , and bank accounts.
5. Smooth Out Property Titles
Now that you are married, are you moving in together? Did you purchase a house? Make sure to put each-other on the title of the house to represent that you both have ownership.
6. Budgeting
Communication is key. We have long talked about the importance of communicating with a spouse, especially when it comes to budgeting and spending. If you and your significant other are not on the same page when it comes to budgeting and spending, you may not be headed towards a solid financial future.
While these are only a few of the topics you should incorporate into your financial conversations, the best place to start is establishing strong line communication. Communication is key in understanding each other’s views and building a strong foundation together. We recently recorded a podcast with psychotherapist and consultant, David Pearl, discussing how to have uncomfortable and oftentimes difficult money conversations with your spouse. For any questions or direction on your newlywed financial situation, reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute meeting here.
