The Exchange of Vows and Credit Reports
Taking a trip down the aisle soon? Don't let those wedding goggles blur your vision. While you are busy planning your big day it's very important to get a hold of how you and your partner will handle your future finances together. This too goes for couples that may be taking the plunge for a second time or getting hitched later down the line.
First, take the skeletons out of your financial closet. According to the Wall Street Journal one way to get the money conversation going is to swap credit reports. Sit down with your future partner over a glass of wine and share your credit scores with one another. This is a great way to see past, present and future financial history. Going over your credit reports together should be a helpful starting point of figuring out where your money is going and who will handle what in your relationship.
Next, decide on how you and your partner will manage and merge finances. Will you go with the old school approach of combining everything into one bank account, opt for the "yours, mine, ours" technique or fly solo with two individual bank accounts? Each method has its pros and cons , so it's up to you as a couple to determine what will work best.
Maybe this isn't your first rodeo and you're taking the trip down the aisle again but this time around you're a little more mature. Getting married or remarried later in life requires you to bring in more of your past than at 20 something. AARP suggest dotting your i's and crossing your's before saying "I do". Swap not only credit reports but also divorce agreements, revisit estate planning to see if a later in life marriage will affect your adult children financially.
If you and your partner don't feel quite prepared to talk about finances, consider meeting with a BCU Investment Advisors who can help give you ideas on ways to handle your finances together. You may also want to look into a prenuptial agreement that will allow both you and your partner to have a financial plan set in writing.