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Tying the Knot? What You Need to Know About Merging Finances with Your Fiancé

Finances with Your Fiancé

How best to combine finances with your fiancé.

Wedding bells might be ringing, but the jingle of combining your funds into one account might not sound nearly as pleasant. Couples face a lot of money issues when they get together. Luckily, many of these can be avoided by addressing issues head on with open communication. To merge your finances with your fiancé with ease, read on.

Talk About It

Money can be a big issue among couples, but not many recognize it. For newlyweds, the first step is to acknowledge the importance of the money issue and bring it to the table. It also helps to begin your financial management by setting up financial goals for one year, five years, and ten years so that you’re both on the same page.

Disclose Information

Tell each other the location of your key financial information. Discuss checking and savings accounts, mortgages, insurance, birth certificates, jewelry, and car information so that you both know exactly what to do in any unexpected situation.

Assess Responsibilities

While your chemistry may be on fire as a couple, it’s important that your finances mesh well together, too. You can avoid unnecessary arguments and confusion down the road by determining the responsibilities of each individual. There is no one correct way for every couple – the key to success is open communication.

Establish a Joint Account

It can be hard for newlyweds to merge finances, but it’s almost always a good idea to open a joint account. The couple can add a specific amount of funds into the joint account to cover bills such as the car payments, childcare, utilities, mortgage, and more. Having a shared account forces you to have communication and share responsibility.

Secure Life Insurance

If you have someone who depends on you financially, you need life insurance. You may have life insurance through your work, but note that it’s often not enough coverage. Getting an individual policy while you’re young and healthy helps to protect your finances, loved ones, and you get to enjoy lower premiums.

Before you walk down the aisle, talk to a professional about how to get your insurance policies together. Once you’re both insured, you can enjoy married life with the peace of mind that you’re protected! Discuss your options by visiting the team at Humble & Davenport Insurance, serving Renton and neighboring cities in Washington.