Tying the Financial Knot

Getting comfortable with discussing money is one of the first steps in a couple's financial journey when Tying the Knot. According to recent research by Guardian Life, the three things causing the most stress to people are all wallet-related money and finances. If you're soon-to-be-married, newly-wed or have been married for a while, here's something to think about: According to data, arguing about money is a leading predictor of divorce. In fact, it's estimated that problems contribute to 20-40% of all divorces, with approximately 41% of divorced GenXers and 29% of divorced Baby Boomers saying that financial disagreement led to the dissolution of their marriages. 

Creating a solid financial strategy as a team can help couples build a more stable and harmonious life together when communication is made a priority. By working together and engaging in open communication about goals, budgeting, saving, investing and managing debt couples can strengthen their partnership, reduce financial stress, and pave the way for a prosperous future.

Before a couple can establish long-term financial goals and develop a strategy for achieving them, it is important to address the basics in order to create a strong foundation for your financial future.  An honest inventory including salary, other income sources, savings, investment accounts, retirement savings, life insurance policies, and outstanding debts and obligations-including student loans, auto loans, credit card debt and child support payments will help access where you currently stand to plan where you are going as a couple. Work together to develop a vision of your future life goals and future financial goals. 

A few questions to ask yourself:

• How do you plan to divvy up your financial responsibilities?
• Should you have a joint checking account, separate accounts or both?
• Is one partner more financially astute than the other to handle the financial responsibilities?
• Who will pay the bills?
• If you're both working, whose health plan should you use?
• What are your short-term and long-term savings goals as a couple?
• How will tax withholding and filing status change after marriage and children?

Everyone's financial journey is unique, with different financial decisions made at different times under different circumstances. However, one thing is true-building financial stability and confidence starts with saving for the future. As you begin your exciting new chapter together, it's can feel overwhelming. From merging accounts to planning for shared goals, co-mingling your money and the financial landscape can seem complex. 

C&A Financial Cash Flow Strategists can help you navigate your savings plan and household cash flow to build a lifestyle you desire. Taking that first step towards financial planning can be the most impactful decision you make as a couple. Your wealth building potential is significant when you start early. The sooner you begin, the more opportunities you'll have for growth and prosperity as a couple. Your journey to financially tying the knot will begin in harmony. Use the link below to schedule an appointment with one of our Cash Flow Strategists to get started.

Understanding the role money plays in relationships is important to recognize early on as a couple. On this webinar, C&A Financial Advisors Emily Zeigler, CFP® and Alex Tragnitz, EA discuss fundamentals around establishing a solid foundation of working together and the importance of communication when it comes to money. They also discuss how to plan for life events, joint and separate bank accounts, identifying your money personality, how to live debt free, and build wealth.