Here's an article that was sent to me that I thought you all would be interested in. I've added in links to Free Money Finance posts where appropriate in case you want more information. This post appears courtesy of Lawyers.com:
With wedding season just around the corner, brides and grooms are preparing to take that walk down the aisle. But in addition to choosing china patterns and wedding cake, engaged couples need to make some serious legal and financial decisions.
Before you take the big leap, consider:
- Be Honest About Your Finances. Be sure that both you and your spouse reveal your complete financial situations to each other. Many couples maintain separate banking and credit card accounts, and it’s important that each partner understands the other’s current financial state, particularly involving debt. Also, be sure you know where your spouse keeps important financial documents – you may need to access them quickly in an emergency.
- Prepare a Budget. Take stock of your monthly expenses, by each accurately documenting your individual and household income and expenses for at least one month. Once you know what money is coming in and going out (on both fixed costs like mortgages and discretionary items like clothes), you can put together an appropriate spending and savings plan. (FMF recommends You Need A Budget
.)
- Establish a Financial Plan for Your Future. Assess your future financial obligations and goals and plan accordingly. If you have children or plan to, you may want to start preparing for education costs. You’ll also need to discuss what sort of retirement you each want to have, and create a way for you to get there.
- Protect Yourself From Unforeseen Circumstances. Ensure that you are protected with life insurance and disability insurance. Also, establish powers of attorney to make financial and healthcare decisions for you if you’re incapacitated (particularly important if you want someone other than your spouse to take on that role). And be sure to have enough money stashed away to take care of common emergencies – like home repairs.
- Create an Estate Plan. Each of you should have a will and other estate planning documents in place to ensure you, your property and your family are taken care of in the way you want, in the event of either of your deaths.
- Work with Professionals. It’s important that you both get advice from trustworthy professionals, including attorneys, who can help with all aspects of getting you and your spouse on solid financial footing.
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