Money and Marriage

One of the top three things with the power to break up a marriage is money. So how can you prepare? Some people think a prenup is the way to go, but does drawing up a contract to keep your cash "in case you get divorced" really bode well for your future as a couple? If you're planning to be in it for the long haul, don't plan an escape route-map out your journey together.

Start your engines well in advance of the big event, if not before the engagement. Be honest with each other about current debts, past issues, and future goals. If one or both of you have had problems in the past, you may want to enlist the help of professionals to get you back on track. Solid credit scores will help you in purchasing a car, if you don't already own one, and a home.

Communication is the key as you'll rely on it throughout your marriage. Learning how each of you handles money individually and discussing how you'll handle it together will help you to build a strong financial foundation. Consider taking one of the many assessments available online to get the conversation started.

You'll be talking a lot about budgeting as you plan your wedding, but you also need to begin thinking about a budget for your lives after the honeymoon. Many people see budgets as restricting, but if used properly, they can free you from a life of doubt and debt. Begin by recording your incomes and spending habits to determine how much money is flowing in and out of your individual accounts. Next, think about what will change when your lives are combined. Unless you went on scholarship, you probably have school loans and perhaps even credit card debt. You'll likely have leftover bills from the wedding and honeymoon. If you've bought or are planning to buy a house, there will be a mortgage and taxes to consider as well as maintenance costs, heating, electricity and other utilities. Food will consume a chunk of your finances, as will gas, clothing, and entertainment. Oh, and don't forget health insurance and medical expenses. Plan an allowance for gift giving at birthdays and Christmas too. Adjust the numbers until your debt to income ratio equals out. It may help you to break it out month-by-month.

It seems like a lot of homework, but you'll be wearing a smiley face in the end. When you're truly in love, you'll find yourself happy to give up a few frivolities for a folic with your fiancé.