Combining Finances: What to Know Before Saying 'I Do'

Managing Shared Accounts, Debts, and Financial Goals

Before you say, 'I do,' there's one conversation you shouldn't skip—money. It might not be the most romantic topic, but discussing finances now can save you from stress and surprises later. Money can either bring a couple closer together or create major tension, which comes down to communication. So before picking out wedding invitations, sit down with your partner and have a real, honest conversation about finances. This open dialogue, covering everything from income to spending habits, is not just a necessity but a reassurance that you're prepared for the financial journey ahead. It might feel awkward initially, but being upfront now means fewer surprises later.

Joint or Separate Accounts? Finding What Works for You

One of the biggest questions couples face is whether to combine finances. Some merge everything into one joint account, some separate things, and others find a middle ground. Here's the good news—there's no right way to do it. It's about what makes the most sense for you as a team. This flexibility empowers you to decide how you want to manage your finances, whether it's splitting shared expenses or keeping personal accounts for fun money. Whatever you decide, the key is that you both feel comfortable and confident in the plan.

Let's Talk About Debt (Yep, All of It)

Before you get married, lay it all out—student loans, credit card balances, car payments, that old medical bill you've been ignoring. No judgment here, just honesty. Some couples tackle debt together, while others separate their individual debts. Whatever route you take, having a plan is what matters. If you're combining finances, it's essential to make sure neither of you feels overwhelmed or blindsided.

The Fun Part—Your Future Goals

Now, let's dream a little. Do you want to buy a house? Travel the world? Retire early? These goals are exciting and much easier to reach when you're on the same page financially. Discuss where you see yourselves in 5, 10, or even 20 years. Then, create a plan to make it happen. And don't worry—budgeting doesn't have to feel restrictive. It's just about ensuring your money goes where you want it.

The "Not-So-Fun" But Necessary Stuff: Estate Planning & Insurance

Okay, this part isn't the most thrilling but essential. Once you're married, you'll want to review things like beneficiaries, wills, and insurance coverage. No one wants to think about worst-case scenarios, but planning can save a lot of heartache later.

Taxes & Marriage—What You Need to Know

Getting married affects your taxes, too. You'll have to decide whether to file jointly or separately; depending on your income and deductions, one option might save you more. A tax professional can help you determine the best approach for your situation.

Let's Address the Prenup Conversation

Ah, prenuptial agreements are the least romantic topic on this list. But here's the thing: A prenup isn't about expecting a divorce; it's about protecting both of you and setting clear financial expectations. If one of you has significant assets, a business, or an inheritance, a prenup can offer peace of mind. It can also help if one of you has children from a previous relationship, ensuring everyone is financially protected. Think of it as a safety net, a way to secure your future together, not a sign of distrust.

Investing Wisely as a Couple

When investing, don't let emotions or trends dictate your decisions. Be smart—stick to SEC guidelines, be wary of "get-rich-quick" schemes, and work with a trusted financial advisor. Diversifying your investments is a great way to manage risk and build wealth over time. And if you're new to investing, take the time to educate yourselves together. It can be an empowering experience as a couple.

The Key to Success: Keep the Money Talks Going

The most important thing? Don't make this a one-and-done conversation. Life changes—jobs shift, expenses pop up, and priorities evolve. Keep checking in with each other about finances, whether it's a formal monthly sit-down or just casual chats over coffee. The more open and honest you are, the stronger your financial (and emotional) partnership will be.

At the end of the day, marriage is about love, trust, and teamwork—including how you handle money. So, talk, plan, and dream together because your financial future is something you get to shape.

Now, enjoy that engagement bliss—maybe have one money talk before the honeymoon!

Disclosure

This material is for informational purposes only and should not be considered financial, tax, or legal advice. Investments involve risk, including the potential loss of principal. The availability and effectiveness of any strategy depend on individual facts and circumstances. Before making any financial decisions, consult with a registered financial advisor, tax professional, or attorney. Duncan Williams Asset Management is not a legal or accounting firm. Neither the author nor any affiliated entity guarantees the accuracy, completeness, or suitability of the information provided. The U.S. Securities and Exchange Commission (SEC) does not endorse any specific investment strategy or financial product. Always conduct due diligence before making financial commitments.

Sources

• U.S. Securities and Exchange Commission (SEC) - https://www.sec.gov
• Financial Industry Regulatory Authority (FINRA) - https://www.finra.org
• Consumer Financial Protection Bureau (CFPB) - https://www.consumerfinance.gov
• Internal Revenue Service (IRS) - https://www.irs.gov
• National Endowment for Financial Education (NEFE) - https://www.nefe.org

‍