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Marriage- The Most Important Financial Decision of Your Life

Marriage is the beginning of a new phase in life. It will not be about you and your coffee machine anymore. You will have to focus on family meals instead of ramen noodles. While marriage can be life changing on one end, it is also a huge shift in your finances.

Here are some ways in which life will change after marriage

The house

If you both are living in a rented space, then there are a couple of scenarios you can consider. One of the partners could move into another’ apartment in the first case. In this case, your rental agreement will now have two names- yours and your partners. This must be negotiated beforehand through a real estate agent or your landlord. The second scenario is when you and your partner move to a different lodging altogether. It would be better to get both names on the rental agreement.

If you or your partner own a house, then things could be tricky. First, decide whether if one partner will remain the owner and the second would/would not pay rent. After this, talk to a lawyer and get things sorted as per law. Don’t forget about making the necessary changes to the homeowner’s insurance policy. Ideally, keep a record of every possession in your house.

The bank account

Ideally, couples prefer to open a joint account because they will have several common expenses that need to be paid for. The joint account could come handy when you have to pay for rent, utilities, etc. It isn’t necessary to maintain a joint account without having a personal bank account. The same is true for investment accounts as well. You could have a joint investment account, with or without a personal account. It all depends on how you both prefer to manage your funds.

Prenuptial agreement

Such agreements are not essential, but they are becoming increasingly common these days. It could be awkward to think about divorce before you are married, but a prenup could save you from several headaches, should there be an unpleasant situation in the future. It could decide how savings, assets and other investments will be divided between you two in case of a divorce; you will save money and will be in a better situation to end the marriage with the least hassles possible.

Common goals and dreams

As individuals, you may have your own goals and dreams to follow. However, as a couple too, you may have a shared vision for the future. Buying a specific car or home, going on a certain vacation or starting a business together could be some goals for a couple. All these goals will demand some financial commitment from your end. If you have big financial plans, then it is imperative to discuss them with your partner beforehand.

Though most couples prefer not to talk about it, finances are major causes of marital troubles. Therefore, being on the same page about finances before getting married will be a sound strategy.

Peter Berry
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