Newlyweds pay attention to 6 steps and 3 tips for financial management

**Interview with Financial Expert on Post-Wedding Financial Planning**

**Q: My husband and I just got married. How should we adjust our financial planning?**

**A:** Getting married is indeed an exciting and joyful time. However, beyond the romance, there are practical matters to consider once you establish a legal partnership. Merging two lives involves various aspects, and financial planning is a significant one to address.

After tying the knot, couples need to decide how to manage their finances, whether to open joint accounts, and how to approach tax filing, among other things.

According to Alissa Krasner Maizes, founder of the investment advisory firm Amplify My Wealth, newlyweds should establish a solid financial foundation together as early as possible. This can bolster financial confidence and help couples move toward their dream life. Ideally, this discussion should even happen before the wedding.

**Six Steps for Newlyweds in Financial Planning**

Every couple’s financial journey will look different, with decisions to be made about shared credit cards, joint accounts, and more. Here’s a step-by-step approach to managing finances after marriage:

**Step 1: Update Tax Filing Status**

Once you are legally married, your tax filing status changes. Whether you choose to file jointly or separately, it’s essential to update your employer with this information quickly. Couples should discuss and decide whether to file as “married filing jointly” or “married filing separately.” Filing jointly generally offers more tax benefits, but in some cases, one partner might need to file separately due to business income or other situations, as noted by Raya Reaves, founder and financial coach at City Girl Savings.

**Step 2: Change Beneficiaries**

Following your marriage, your spouse becomes a close relative. Therefore, updating beneficiaries on your insurance and retirement plans is crucial to ensure that your assets are transferred smoothly and as you desire. Michael Collins, founder and CEO of WinCap Financial, recommends couples include each other as beneficiaries on life insurance and retirement accounts.

**Step 3: Develop an Emergency Plan**

Now is a great time to revise your estate plan and create other emergency plans. Maizes emphasizes that having an estate plan provides peace of mind, ensuring that your assets are distributed according to your wishes. This includes decisions about who will manage your affairs if you become incapacitated and how to care for children should anything happen.

Collins suggests that you ensure your will and power of attorney documents accurately reflect your new marital status and any changes in your asset distribution plans.

**Step 4: Consider Opening Joint Accounts**

Opening a joint bank account can be an effective way for couples to manage household finances, but it’s not the right fit for everyone. Reaves points out that you might choose to merge all finances into one joint account, or maintain separate accounts along with a joint account for shared bills. Ultimately, couples should decide based on how they wish to manage finances together, as there is no one-size-fits-all solution.

**Step 5: Create a Debt Management Plan**

It’s often said that when you marry, you marry into each other’s debts. While being married doesn’t automatically mean you share the responsibility for pre-marital debts, it’s important to discuss how to handle them together. Collins suggests discussing repayment plans and how to share household expenses since each partner’s financial obligations may vary.

**Step 6: Openly Discuss Financial Management**

Maizes stresses the importance of honest communication about finances, debts, assets, and goals within a marriage. Although some discussions may be uncomfortable, addressing these topics is essential for achieving financial harmony. Talk about your current financial situation, debt, monetary goals, and how each partner will manage their contributions towards shared expenses.

Setting clear expectations during this early stage can help prevent conflicts and pave the way for established financial goals.

**Three Tips for Managing Finances Together**

Discussing money can be uncomfortable, but it’s essential for partners to strive for unity in financial matters.

**Tip 1:** Work with a professional financial planner. This can assist with budgeting, estate planning, and even drafting prenuptial or postnuptial agreements. A neutral third party can facilitate the discussions.

**Tip 2:** Keep some funds individually managed. This way, if issues arise, both partners’ finances remain separate.

**Tip 3:** Address concerns early and discuss solutions. Don’t shy away from making adjustments to your plans as necessary—this flexibility is vital for successful joint financial management.