Engagement. Wedding planning. Wedding. Honeymoon. Did someone say finances?
Money planning can difficult to navigate for newlyweds.
(Particularly millennial newlyweds, who have a habit of burying their head in the sand and avoiding the entire situation of “money”. Credit cards? Student loans? Nahhh, let’s just go travelling.)
But getting married brings a whole swarm of ‘adult’ questions under the spotlight. Should you buy a house straight away? Should you plan for kids, or try to fall pregnant straight away? Should you continue renting and start saving? Should you blow it all on a round-the-world-trip? This does not take into account the debt you possibly entered into when planning the wedding of your dreams.
There are few logistics you should think about before deciding on any of these things. They’re not fun. They’re certainly not romantic. But they’re necessary. They’re necessary because for a marriage to work, everything needs to be on the table (80K student loan included).
Prenup (if you’re not yet married, but very soon will be).
Don’t flinch. It’s not a dirty word, and it should apply to everyone, not just the James Packers of the world.
First off, to debunk the gasps of horror that usually follows the shame-inducing word. THERE IS NO REASON TO BE SHAMED. Prenups are smart and, contrary to popular belief, they don’t equal divorce.
The purpose of a prenup is to lay out all the financial assets of you and your partner. Think of it like an eyebrow wax, it will get worse before it gets better. You need to reveal everything about you financial positioning, including accounts, retirement savings, businesses owned by you or your family, and debts owing.
You will then go through the ‘hypotheticals’. For example, will your partner help you pay off your debt? Will they be reimbursed for this if you divorce? What happens when one of you receives an inheritance? How will it be shared? What will happen in the division of money if (hopefully never) you break up? This adds clarity if the time ever does come. Foresight is not superstitious, it’s smart.
“Be committed to be open and transparent,” certified financial planner and author Pam Friedman told Cosmopolitan. “You’re combining financial lives, but you want to protect your financial lives.”
Insurance and ‘beneficiaries’ (whatever they are).
Warning, “adulting” ahead.