What to do financially before you say “I Do.”

You’ve set the date, found the perfect attire, and even selected a delectable five tier butter cream cake. Your wedding planning is going just the way you’ve always dreamed. One more must-do before you walk down the aisle is to talk to your fiancé about how you will handle your finances once you are husband and wife.

Did you know that one of the top reasons marriages go sour is the disagreement on money matters? Making sure you both are in agreement in regard to managing your money will go a long way toward preserving a happy household. So, before you take the matrimonial leap, here are a few things that you should discuss with each other which will give you a good start to a financially intact marriage.

What things would you like to achieve in the future? — whether you are planning on buying a house, going back to school or starting a family, these are all topics that should be discussed before you tie the knot. If you want to be a stay at home parent or want your kids to go to a private school, you and your fiancé should make planning for this a priority. You want to make sure you have the same savings goals and you are on the same page when planning your future. You should meet with a financial planner together to discuss the best way to achieve these goals.

Review your combined assets and debts—knowing your combined income and debts beforehand will ensure that there are no surprises once you get married. The key is to pay down your combined debt and clean up your credit before you get married, then you are not coming home to a mountain of debt after your honeymoon. You can check your current credit report at www.annualcreditreport.com. When it comes to making combined purchases that will be financed, lenders will pull both of your past credit histories. Paying down your debts up front will eliminate future embarrassments. This can be a team effort so that you are sure to meet your planned financial goals. If you have accrued a lot of debt in the past, you may also want to meet with a debt counselor to understand the best way to pay off your debt before you get married.

Create a household budget—before combining households, discuss what each of you spend on a monthly basis for things like food, clothes, or miscellaneous items such as your favorite magazines. Create a budget so that you are not spending more than you make. Visit our BudgetSmart Web page to discover how much money goes out of your household. This will help you determine who the spender or saver is in the relationship. Are these expenses that you will keep once married? What is your tolerance of spending money?  Decide who will be responsible for paying the monthly bills and if you will open a joint account or keep your accounts separate. Also, now is the time to start an emergency fund. This is money that you put away on a regular basis in a savings account. It should go untouched until an emergency arises. A good guideline is to have 3 to 6 months worth of living expenses set aside in a
savings account.

Discuss how you will handle your insurance—combining insurances like health, home and auto will save you a lot of money in the future. Review each other’s policies to see which plan will benefit the both of you the best. You will want to make sure that your current home or renter’s insurance will cover both of you and your possessions. Do you have life insurance? Now is the time to determine if you need it or if you already have it, do you have enough?  Also, think about updating the beneficiary once you are married. Rules vary by state, so don't assume that your spouse is automatically going to receive 100 percent of your policy if something happens to you.

So, before you mail your wedding invitations to hundreds of anxious guests, make sure you “Save the Date” to discuss your finances with each other. Uncovering your current financial status and knowing what each of you will bring–for better or for worse–into the family budget before you say I Do will help lead to a happy and prosperous marriage.

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