Did you recently get married? You’ll likely be focused on having a great time on your honeymoon, but after that, you’ll need to set some time aside to focus on the many financial-related tasks that need to be taken care of once you’ve signed the papers to live happily ever after.
Taking a proactive approach to your finances now that you’re a married couple can have long-term benefits, and also prevent problems and misunderstandings from arising. In other words, it’s generally good for your bank balance and good for your relationship.
With that in mind, we’ve put together a small guide on what you’ll need to do once you’re back from your lovely honeymoon.
Figure Out How You’ll Handle Bank Accounts
You’ll need to figure out how you’re going to manage your money as a married couple. Some couples choose to have completed shared bank accounts, in which everyone has access to everything. Others prefer to have their own individual bank accounts, but that can make paying for joint expenses more challenging. The most common route is to take a hybrid approach, in which both partners have their own account but also have a shared account. Sit down with your partner and figure out what will work best for you.
Consider Creating a Will
You’ll have a lifetime of happiness ahead of you, but it’s also important to think about what would happen in the event that something happens to you. That’s especially true if you have children or other dependents, but making a will is worthwhile even if you’re currently childless. Most people assume that their spouse will automatically get their entire estate, but that’s not the case. Creating a will is a way to ensure that your spouse gets exactly what you intend them to have, without any misunderstandings. While it might be a long time until the will is exercised, creating one early can give you the peace of mind in knowing what will happen.
Inform the Tax Authorities
Most people roll their eyes when they have to deal with the tax authorities, but getting married is one instance when you should actually welcome the conversation. Informing the tax people that you’re now married can impact how much tax you have to pay. Most countries incentivise marriage by offering tax breaks and other benefits. Some countries, such as the UK, also have a legal requirement to inform the tax authorities that you’re married. The upside is that your spouse won’t pay inheritance tax on anything you leave them, you can move savings from one account to the other to maximise tax-free allowances, and you can get the most of capital gains tax allowances, too.
Create a Budget
Finally, make sure to create a budget with your spouse. This simple step can go a long way for keeping your finances in check and your relationship in harmony — money, after all, is the number one cause of fights in relationships. Getting on the same page early will prevent many problems further down the line.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)