A marriage is a union between two souls, two families, ideologies, and often in the shadow but also finances. As times change, so have marriage and relationships, and we must adapt to fit these changes. Those days are behind us when the bride and groom’s only job was to wilfully agree  to arrange marriage, and the elders of the family handled everything when it came to money matters. In current times, couples prefer to date, come to an agreed wedding date and plan all aspects including their financial responsibilities together. Starting a new chapter in your life means arranging a million things, planning the wedding, posting the guest list, shopping for the dream attire, choosing the venue, etc. Before you embark on your journey, if you haven’t already, it is important to discuss your finances along with these things. You should discuss these aspects beforehand to avoid unpleasant surprises later.

Discuss Income & Sources

Together, you should draw up a list of all your sources of income and share it with each other. As a result, each of you will know what your collective income is. The incomes can either be bundled or kept separate, like they are now. Some couples prefer to have separate incomes for their expenses and investments.

Expenses

Additionally, you and your partner should discuss the expense list. It is important that you both disclose all current and future expenses you are expecting. Using this method, you’ll understand how to spend, save and invest your income towards common goals. Exchange ideas on how to clear loans and outstanding mortgages between each other that have worked for you.

Savings and Investments

With each new step in your journey, you’ll encounter new milestones and goals. Partner up with your better half to align your investments and savings in order to reach your goals and milestones faster. Couples sometimes decide to pool their investments, but this may create issues if, for some unfortunate reason, you decide to part ways. Due to this, many couples today choose to have their investments separate, which will also give you the freedom to choose whom you would like to be your nominee on your investments. If you want to name your parents or differently abled siblings as beneficiaries, you can do this without clubbing your investments with your partners. As an alternative, you can both nominate each other as well. At this stage, you need to think about your common goals, your time horizon, financial planning, and asset allocation and review them regularly to make sure you are on the right track.

Prenup

India is slowly catching up to this Western tradition before marriage. This serves as a protection for both of you since the agreement details all your assets and investments. Non-disclosure of assets and income can lead to the entire agreement being considered null and void. In addition, you should both detail any bequest you wish to make as well as alimony and financial support for children. In the future, the prenup can be amended to reflect changing circumstances. Having this information will also be useful if you are incapacitated so that others know how you would like your money to be dealt with after your death.

Health care

Consider including your partner in your current health insurance plans so that both of you are protected right away. Your current family plan, which may include your parents and siblings, can continue. Regardless of the way you choose, make sure you have medical and life insurance for you and your family.

Before you get married, you should talk about your financial perspective and philosophies with your partner for a deeper understanding of them and to ensure you are both looking at the same view in hindsight. Financial ideologies are based on experiences, some good and some bad, and it is an excellent opportunity to learn from each other’s experiences. Set goals together and consider each other’s aspirations. In a stormy sea of life, being transparent with your partner builds trust that will last a lifetime.

This guide only scratches the surface. Bringing on board a credible and trustworthy financial planner is a good way to start. With their help, you can approach every aspect from a holistic viewpoint and without bias or emotion. Furthermore, with their help you can avoid any pitfalls, stay on track and achieve financial goals and ultimately financial freedom as a couple.

Need help? Reach out to our financial planners today.