Marriage or Divorce Planning

Financial Guides

What are the financial implications of marriage(and of divorce and re-marriage)? Those who have recently changed their marital status or who are planning such a change may have important financial and legal decisions to make. These decisions might deal with property ownership, providing for children’s welfare, post-mortem planning, and day-to-day finances.

This Financial Guide will discuss the financial steps appropriate to a change in marital status. Because divorce is sometimes the flip side of a marriage and often the bridge between marriage and remarriage, it is covered here as well for the sake of overall context. The guide will also briefly touch on the legal issues involved; however, the variations in state law make it impossible to discuss in depth the many legal ramifications of a change in marital status.

How To Prepare Financially For A First Marriage

For the young, newly married couple, the areas of financial concern that will need to be addressed are:

•life insurance,

•form of property ownership,

•money management.

Life Insurance

When it comes to insurance needs, the basic rule is that you need enough coverage to sustain your family’s present income level should you die. If you are the only breadwinner, or if you plan on starting a family soon, then you will need to purchase life insurance.

Related Guide:
Please see the Financial Guide: LIFE INSURANCE: How Much And What Kind To Buy.

Property Ownership

If you intend to own a residence or other property, or if you and your spouse already own property together, you will need to consider the best way for you to hold that property. Will the property be held solely by one spouse? By both spouses jointly? Because of the complex legal implications of the various forms of property ownership, you should seek legal advice about this issue.

Money Management

It is important to consider carefully how your day-to-day finances will be handled. The new couple should discuss financial goals, resolve differences, and establish a budget and/or saving and investment plan.

Will you have joint bank accounts, separate accounts, or both? How much do you want to spend on vacations? On monthly food bills? Entertainment? Gifts? What are your long-term financial goals? Do you have a financial plan, even an informal one?

If you don't have a financial plan, now is the time to prepare one. Even if you do have a plan, your changed marital status suggests that you review it.

Related Guide:
Please see the Financial Guide: YOUR FINANCIAL PLAN: Getting Started on A Secure Future
(AVAILABLE SOON).