Advice: Top Prenuptial Tips From The ABA

Money can’t buy you love, but it can definitely complicate love, explains the ABA Education Foundation.
 
“Love is the bond that connects, and money could be the wedge that separates,” explains Laura Fisher, ABA Education Foundation director.  “Once couples have made the decision to wed, they need to discuss finances.”
 
The American Bankers Association Education Foundation suggests couples looking to “jump the broom” discuss critical issues that could make or break a couple, such as:
 
1.     Just the two of us. Will you and your spouse-to-be keep finances separated or combine them? Consider individual money styles and find a system that works for you. Regardless of the choice, it is important to take the time to outline and illustrate a financial picture as a couple.

2.     Massaging debt.  Couples should develop a plan to pay down existing debt, starting with the balances that carry the highest interest rates. Whether or not the pair works as a team or alone, debt must be tackled.

3.     Saving matters. Negotiate a budget that incorporates everyday money matters. This can help you keep an eye on your income and spending habits. However, creating a budget does not equal a savings plan. Saving as a couple fosters teamwork and is essential in times of financial hardship. Decide how much you want to save as a couple, and do it automatically from your paychecks.

4.     Love’s cost. Calculate costs and discuss how bills will be paid. Both may contribute to the bill, but who will physically write the check to pay the bills, monitor the investments and take care of the taxes. Consider setting a date every month to review and discuss finances.