Marriage is a beautiful commitment, but it’s also a financial partnership that can have lasting consequences on your life together. Before saying “I do,” it’s important to take steps to protect yourselves financially and set the foundation for a strong, stable future. Here are five things every couple should do before getting married:
1. Have the “Money Talk”
Talking about money may not sound romantic, but it’s essential. Sit down together and lay all your financial cards on the table: debts, assets, income, and spending habits. Discuss your financial goals—whether it’s saving for a home, traveling the world, or building a retirement nest egg.
Why it matters: Open communication about money can prevent misunderstandings later. Plus, it helps you create a game plan for managing your finances as a team.
2. Sign a Prenup (Yes, Even If You’re Not Rich)
Prenuptial agreements aren’t just for celebrities and billionaires—they’re for anyone who wants to protect their assets and financial future. A prenup outlines how assets and debts will be divided if the marriage ends, offering clarity and security for both parties.
Why it matters: A prenup can protect family inheritances, business interests, and personal savings, ensuring that your financial future is safeguarded no matter what happens.
3. Purchase Life Insurance
Life insurance might not be on your radar when planning a wedding, but it’s a critical step in protecting your partner’s financial well-being. If one of you were to pass away, a life insurance policy ensures the surviving spouse isn’t left with overwhelming financial burdens.
Why it matters: Life insurance provides peace of mind, especially if you’re planning to buy a home or have children, ensuring your partner’s financial stability in the face of tragedy.
4. Create a Joint Budget
Once you’re married, you’ll likely share many expenses, from rent to groceries. Creating a joint budget before walking down the aisle helps you determine how to manage shared expenses and individual spending.
Why it matters: A joint budget fosters transparency and ensures you’re both on the same page about your financial priorities, reducing the potential for money-related conflicts.
5. Check and Update Beneficiaries
Marriage is a great time to review and update the beneficiaries on your accounts, including retirement funds, investment accounts, and insurance policies. Ensuring your spouse is listed (if you choose) helps avoid complications down the road.
Why it matters: Without updated beneficiaries, your assets may not automatically transfer to your spouse in the event of your passing, leading to unnecessary legal hurdles.
Final Thoughts
Marriage is about love, but it’s also about building a life together—financially and otherwise. By tackling these five steps before the wedding, you’ll set yourselves up for a marriage built on trust, communication, and mutual financial security.