Getting married is exciting. You’ve found that perfect person and you’re ready to commit your life to them. This is a special time in anybody’s life, but you cannot neglect “the talk.” No, this isn’t “the sex talk,” this talk is about money and credit.
Understanding the person you’re marrying on a financial level can help you avoid the number one cause of divorce in the United States today, money. If you know they’re a spender or a saver, you can plan the budget accordingly. It’s also very important to know what type of debts they carry, what’s on their credit report and what the financial picture looks like for both of you together.
Tips for a Successful Financial Marriage
Avoid New Debts and Pay off Old
The longer you can keep from going further into debt, the better you will be ten, fifteen or even twenty years into your marriage. Overspending to satisfy the instant wants can lead to serious financial issues, which often cause divorce. If you cannot afford it, don’t finance it in the first five to ten years of marriage.
On the flip side of things, if you’re coming into the marriage with large debts, get busy working to pay these debts off. The sooner you eliminate unnecessary debt, the less you’ll have to worry about money getting in the way of a healthy marriage.
Building your Credit
Credit will play a major factor in buying your first home and with many other large financial decisions along the way. You need to commit to building a good credit score for each individual and the joint credit file for you as a couple. Keeping debt under control will help in many ways, but you also need to plan your expenses together.
These are just two of the tips you need to think about when merging your finances with your future spouse. The more you talk about and understand where each of you sits, financially, the better chance you have of avoiding a divorce due to money.