Less Fun Yet Important Things to Handle Before Getting Married

Getting married is an exciting and joyful experience, filled with celebrations and the promise of a future together. However, while planning the wedding and thinking about the honeymoon are the fun aspects of tying the knot, there are some less glamorous but equally crucial tasks that need attention before the big day. These tasks might not be as exciting as choosing a wedding cake, but handling them can set the foundation for a smoother, more secure life together.

Open and Honest Financial Discussions

One of the most important, though often uncomfortable, conversations couples need to have before marriage is about finances. Understanding each other’s financial standing can help avoid future conflicts. This includes sharing details about any existing debts, income, spending habits, and financial goals.

Discuss Debt and Credit Scores

If one or both of you have debt, whether it’s student loans, credit card balances, or personal loans, it’s essential to be transparent about it. Knowing how much debt you’re both bringing into the marriage allows you to plan how to tackle it together. Credit scores are another critical factor that can affect joint financial decisions like buying a house or applying for a loan.

Create a Budget Together

Before getting married, sit down together and create a joint budget that accounts for all household expenses. This budget should consider your income, bills, savings goals, and discretionary spending. It helps to know how each partner views money and what priorities you both have financially.

Drafting a Prenuptial Agreement

While not the most romantic conversation, a prenuptial agreement can be vital for many couples. A prenup protects both partners’ assets and clarifies how property and debts will be divided if the marriage ends in divorce. It’s a safeguard that provides clarity and security, particularly if one partner has significantly more assets or owns a business. Consulting with a prenup lawyer can ensure the agreement is legally binding and fair for both parties.

Protection of Personal and Family Assets

If you or your partner have personal or family assets, such as inheritance or family businesses, a prenuptial agreement can help protect those assets in the event of divorce. It’s also useful if one or both partners have children from a previous marriage, as it can ensure their financial future is secure.

Organizing Legal Documents

Marriage brings significant legal changes, so it’s crucial to update or create essential legal documents. This may include updating beneficiaries on your accounts, creating a will, and ensuring that both of you have the necessary powers of attorney in place.

Updating Beneficiaries

When you get married, it’s likely that you’ll want your spouse to be the beneficiary on your life insurance policies, retirement accounts, or other financial assets. Make sure these documents are up to date to reflect your new marital status.

Creating a Will

Marriage often brings with it the responsibility of planning for the future. If you don’t already have one, now is the time to create a will that outlines what will happen to your assets in the event of your death. This document is especially important if you have children or plan to have children soon.

Reviewing Health and Life Insurance

Before getting married, it’s essential to review your health and life insurance policies. Marriage may offer you the opportunity to combine health insurance plans for better coverage or lower premiums. Additionally, life insurance becomes more important when you have a spouse who may rely on your income in the future.

Combining Health Insurance Plans

Many couples can save money by joining one partner’s health insurance plan. Review both of your options to see if combining makes sense financially and if the coverage meets your needs.

Updating or Obtaining Life Insurance

If you don’t already have life insurance, marriage is an excellent time to get a policy. This ensures that your spouse will have financial support if something happens to you. It’s also worth updating any existing policies to reflect your new marital status.

Tax Considerations

Marriage affects your tax situation, so it’s worth understanding the changes and how they may benefit or complicate your financial picture. Many couples find that their tax filing status changes after marriage, which can influence deductions, credits, and liabilities.

Filing Jointly or Separately

Married couples typically have the option to file taxes jointly or separately. Filing jointly often leads to tax savings, especially if one partner earns significantly more than the other. However, there may be cases where filing separately is beneficial, particularly if one partner has significant medical expenses or miscellaneous deductions. Consult a tax professional to determine the best filing strategy for your situation.

Handling these less exciting, yet essential, tasks before marriage sets the stage for a more stable and secure future together. While they may not be the most thrilling aspects of wedding planning, these financial and legal considerations are vital for protecting both partners and ensuring a successful partnership. Taking the time to address these issues before saying “I do” allows you to focus on the joy and excitement of your new life together, with fewer worries down the road.