6 pre-marriage financial decisions everyone should take before saying ‘I Do’

Have you started the countdown to your D-day? Venue, menu, guest list, perfect dress, bachelorette party, too much to plan and too little time! Well, before you get started with anything, stop right there and discuss your pre-marriage and post-marriage finances first. Psychologists say that it is often the foremost reason behind an unhappy married life. Without further ado, here are six things which you should include in your must-do list.

1. Financial infidelity
“Honey, I have a Rs 50 lakh debt over my head.”
No one wants such surprises after marriage. It is always safer to know the whole picture you are marrying into. Counselors advise that soon-to-be-married couples should be frank and discuss all financial debts, assets, credits and financial obligations with their partner. The most important step comes after disclosing the truth- how and when to clear each debt. Most young couples these days will invariably be carrying the burden of student loans or car loans. Counselors advise the credits with the highest interest rates to be cleared first.

2. Financial Togetherness
Gone are the days when successful marriages were defined by physical and mental closeness. A third party has silently crept onto the marital bed and made a comfortable place in the honeymoon suite. It is important to discuss about how much financial togetherness each one wants. No matter how awkward you feel, let him know if you want a separate bank account! Just say it. Some couples share a common account, some share a part of their finances jointly, while some divvy up the expenses.

3. Financial successes
While your partner might be the one-son-one daughter-good school-good college type, you might be the one for the yearly-lavish-family-vacation type. Contrary to the usual perception, different financial mindsets do not drive a marriage towards divorce. So long, you know clearly about each other’s definition of ‘financial successes’.

4. Budget
This is the most important decision every person should take once in a lifetime. And if you are getting married anytime soon, then your partner should take part in it equally. Whether you want to buy a house first or a car or to have kids first, it is all your choice. Just don’t keep your partner up for a surprise. Everyone has that nightmare; someday their partner might come and say “Surprise! I bought a villa!” when you are already in a neck-deep debt puddle.

5. Insurance
Medical Insurance, Travel Insurance, House Insurance, Car Insurance, Life Insurance, Education of children Insurance...tired and bored already? However mundane these may sound, just take out half an hour and be done with it already.

6. Estate planning
This may seem like a drag, but newlyweds should make it a priority to draft certain legal documents, notably last will and testament, durable power of attorney, health care proxy and living will. And, going the legal way never means don’t-trust-you.
(image credits: phillipjamesfinancial)