Managing money in marriage: 4 key areas

If you’re married, it helps if you both understand each others’ personal finances. Want to know more about managing money in a marriage? Read on.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Wedding table for a newlywed banquet with eco decor and floral design in the style of boho.

Image source: Getty Images

If you are married or in a civil partnership, then it’s worth considering how best to manage your money in a marriage if you haven’t already done so. According to wealth managers Seven Investment Management, there are four key areas that you should consider.

1. Talk about money

Probably the most beneficial thing you can do is to have a conversation with your partner about your finances.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

People’s attitudes to money vary considerably. A frank and honest conversation about money will give you both an idea about each other’s financial habits. This should cover a wide range of subjects, but you can start by finding out your partners opinions on risk, debt and savings.

It would also be beneficial to discuss your hopes and aspirations. If you are planning a family or already have children, you may want to discuss the possibility of private education, for example. If your parents are still alive, looking after elderly relatives may be a topic that is also worth talking about.

[top_pitch]

2. Get educated, get organised

A conversation about money will help to pinpoint each other’s strengths and weaknesses when it comes to managing money in a marriage. But it doesn’t mean that one member of the partnership should take sole responsibility.

The next important step for you and your partner is to get educated about how to manage your personal finances, and put this into action by getting organised.

Start with getting the basics right. Make sure you have an emergency fund for anything unexpected and keep this safe. You should both have an idea of how your everyday expenses are paid. Create a filing system that you both have access to. This will prevent any problems if something happens to either of you.

Make sure your finances align with your future plans. If you are planning to buy your own home with a mortgage, you will need a good credit score. Your plans could be compromised if you have unmanageable levels of debt, so it is worth taking steps to get existing debts under control.

3. Review your cover

It’s very easy to avoid talking about this issue. No one wants to think about what will happen when they die. However, making financial arrangements before the inevitable happens is an important aspect of managing money in a marriage.

If you have a mortgage, chances are you will need to apply for life cover anyway. It’s worth making sure you have adequate life cover to take care of additional expenses, such as funeral costs.

It’s also important to note that death isn’t the only event that could prevent you from contributing financially. So it might also be worth considering income protection as well.

[middle_pitch]

4. Tie up loose ends

It’s worth considering estate planning, which will ensure your last wishes are taken into account. Going through the estate planning process will allow you to make decisions about how you want your loved ones to be taken care of. You can also make sound decisions about other financial gifts.

Make sure any relevant paperwork is in a safe place known by your partner. This should include a copy of your will, any life insurance paperwork and other important information such as the name of your solicitor and your bank account details.

Take home

It may seem like a lot to think about, but remember that you are not alone. You are part of a partnership. Being open and honest about your finances is an important part of managing money in a marriage.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »