For young couples, graduating college and embarking on new career paths can be part of the exciting new adventure they share together. Yet, when one or both spouses bring debt and financial baggage to this new partnership, that journey can be over before it even begins. With the average millennial living in an urban city carrying an estimated $23,000 worth of debt, couples chasing the American dream may often feel like they are always struggling to keep up.
According to Student Loan Hero, an educational website for managing debt, one-third of borrowers said college loans, other debt, and credit problems were major factors in their divorce. Healthy money management habits are as crucial on the first day of a relationship as they are after 20 years of marriage. The following are some tips for protecting your relationship from common money woes that can sideline your union.
- Be transparent: As with any aspect of a relationship, honesty creates intimacy. Coming clean about your financial history and habits will help you both have a clear picture of where you stand and what you need to do to get where you want. Trying to hide debt or credit problems from your spouse can be just as devastating as a physical betrayal or infidelity.
- Enjoy the perks: In this country, marriage comes with a few financial benefits. Spouses are often eligible to receive disability and social security benefits for their spouse. Couples can make deductible contributions into a spousal IRA. There are numerous tax benefits as well for couples filing jointly.
- Maintain good communication: A financial pow-wow should not just be a one-time thing. Check in often with your spouse to make sure you are both on the same financial page and share input on any major financial decisions impacting your household.
- Tackle your to-do list: Every new couple should get right down to business when it comes to checking off important tasks. Your new relationship money to do list should include updating health care benefits, wills, retirement plans, life insurance, and other important accounts. Many of these details can be included in your prenuptial or postnuptial agreement.
- Talk about the future: It is never too early to discuss the goals you have for your family. Do you want children? Will one parent stay home to care for the children? What are your career goals? How are you going to plan for retirement? The answers to these important questions will influence all your financial decisions. With clear goals in mind, it is easier to make smart financial decisions from the very beginning.
Legally-enforceable prenuptial agreements establish the terms for alimony, life insurance, the division of property, and other important matters to protect you in the event of a divorce. To discuss your prenuptial agreement or any other family law matter, call (856) 512-1461 or contact us online. With locations in Marlton and Somers Point, New Jersey, we proudly represent clients from the surrounding areas including Camden County, Burlington County, Atlantic County.