Here's a piece from SmartMoney magazine that discusses the issue of one spouse hiding debts from another (not a good practice to say the least.) But what I liked about the article were the suggestions for engaged couples. In addition to the traditional advice that couples should "discuss their finances and financial goals" prior to marriage, the piece also suggests that each partner run a credit report and share it with the other. That seemed like an especially good idea to me.
Before we got married, we talked very little about money. Fortunately, both of us had our personal finances in order and our philosophies about handing money are very similar. But that's not the way it is for most couples. In fact, it's more likely that any given couple will have very different views on money than very similar views. That's why it's important to discuss your thoughts on money as well as your current financial situation prior to marriage. And for those who may not be willing to tell the whole truth, that's where the credit report can help out. ;-)
Sounds to me like "poor people with negative net worth are unqualified to get married."
Posted by: Minimum Wage | April 18, 2007 at 12:41 AM
As a pastor who does pre-marriage counseling with couples before marrying them.... This sounds like a great idea! So far, I haven't bumped into this particular issue of hiding debt, but the goal of the pre-marriage counseling is for them to get to know themselves and each other better, including the things from their past that influence their present and future together. Having a fresh credit report & sharing that with each other could be a pretty natural part of that process.
Re: "Minimum Wage" - This wouldn't disqualify anyone from marriage. It's just a way for the couple to be forthright and honest with each other about their current financial situation, so they can make good plans about how to move forward as they merge their (financial) lives.
Posted by: Rich Schmidt | April 18, 2007 at 10:03 AM
As a pastor who does pre-marriage counseling with couples before marrying them.... This sounds like a great idea! So far, I haven't bumped into this particular issue of hiding debt, but the goal of the pre-marriage counseling is for them to get to know themselves and each other better, including the things from their past that influence their present and future together. Having a fresh credit report & sharing that with each other could be a pretty natural part of that process.
Re: "Minimum Wage" - This wouldn't disqualify anyone from marriage. It's just a way for the couple to be forthright and honest with each other about their current financial situation, so they can make good plans about how to move forward as they merge their (financial) lives.
Posted by: Rich Schmidt | April 18, 2007 at 10:06 AM
My wife and I bought a house together 4 months before getting married, and so we got a good look at each other's credit reports ahead of time. I can't say that it made a big difference; we both have great credit.
Posted by: Blaine Moore (First Time Home Owner) | April 18, 2007 at 10:07 AM