Money problems in marriage
solid partnership. Unfortunately, money too often
equates to control in a relationship. The delicate
balance of power between you is dependent on the
successful combination of love and money.
In the majority of relationships today, both
members contribute financial resources. Despite
the strides women have made toward financial
equality on the job, though, men still have greater
earning power. In general, with more disposable
income, men invest more money and take greater
risks than women. Women as a whole are more
conservative in their investments because it takes
them longer to earn the money. Money attitudes
are also influenced by age, family upbringing,
religion, and each person's own unique financial
trials and errors.
Everyone has opened a bank account, paid the
rent or mortgage, kept the telephone and electricity
turned on. When you make the decision to share
your life with someone, though, such mundane
issues suddenly become complicated.
Do you keep separate bank accounts or do you put
all the money in one account? How do you split
monthly expenses? Do you each pay a portion or
do you pay bills out of a joint account? Should you
be able to sign on your partner's bank account?
Did one of you bring assets to the relationship that
the other uses, such as a car or a home, for which
expenses should be shared?
Financial advice for couples over fifty varies
significantly depending on age, economic status
and dependents. Every situation is different, but the
following is general advice for everyone.
Many modern couples keep their finances separate,
while others opt to pool all their funds. Making the
decision on the day-to-day handling of what was
formerly “his” and “her” money can be a tough
one.
There are benefits to keeping separate property
funds separate and maintaining certain assets in
one name only, which we'll explain in more detail
in the next chapter. Keeping other monies separate
may create logistical problems, though, along with
a diminished sense of common goals for the
future. Combining your funds also gives a couple
greater borrowing and investment power.
Determining a financial plan that works might take
months; many couples struggle for years before
reaching a balance. Defining and discussing your
money styles is the first step, setting goals is the
second.
Review your financial picture. Are you both
satisfied with your knowledge and control of “your”
money and “our” money? Are you both
knowledgeable about banking, insurance,
investments, credit cards?
The routine business of a new life together should
include the following:
Reevaluation of life, health, auto and other
insurance coverage
A change of beneficiary on insurance policies and
company pension plans
Notification to social security of your marriage to
ensure eligibility for your spouse's benefits and
change of W-4 withholding
An assessment of the impact of remarriage on
alimony or pension/retirement benefits from a
prior marriage
A consultation with an accountant to learn the
impact your marital status will have on your
federal or state income tax obligations
In a remarriage, be aware that the income of a new
spouse may impact eligibility for financial aid of
college-age children from a prior marriage.
You may need to consult your banker, your
employer, your insurance agent, your accountant,
your attorney or other professionals to accomplish
these tasks.
Your goal in tying the fiscal knot is to protect your
spousal rights and save money. Begin your
research before the wedding and make sure you
follow through. Loveandthelaw.com should be your
first stop - it’s an easy and inexpensive way to
stay informed.
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