For those who are planning to marry, an important aspect to consider before the upcoming nuptials is to have an open and honest conversation about money. While not as glamorous as planning a honeymoon retreat, it is imperative to discuss finances, existing debt and the prospect of a prenuptial agreement. More couples in Maryland and other states are entering into prenuptial agreements while planning for their future together.
Couples should have a casual conversation about financial history and what assets and debt each person will bring to the marriage. These talks can determine if couples will pool finances or keep things separate. Some choose to keep separate accounts and share expenses such as household bills like rent and utilities. Knowing up front how the other handles money opens the lines of communication and can bring couples closer together.
Couples who have different income levels may decide that one will cover the bulk of household expenses while the other diverts money into an account for savings and future expenses. The parties should also agree with each other on how to handle any high-dollar expenses. However, by keeping finances separate, couples run the risk of reckless spending by one, and they also lose the opportunity to work together as a team to build savings and plan for retirement.
Money is often at the center of a divorce, but by having open discussions about financial matters before getting married, couples can understand each other’s perspective on spending, saving, retirement and other life goals. Experts recommend being honest and putting everything in writing before consulting with a professional. In Maryland, prenuptial agreements crafted by an experienced attorney can help clarify the financial responsibility of each party in the event of a divorce.