LOVE AND MONEY
Financial discussions before marriage crucial
You’ve booked the wedding hall for June and planned the honeymoon — but you don’t want to talk about money before you marry.
According to a recent survey conducted by SunTrust Bank, although 88 percent of 2,000 respondents said the discussion of finances is key to a couple’s future, only half actually raised the issue.
“Some may be hesitant to reveal poor past decisions or may be concerned that financial details could change the landscape of the relationship.” said Joe Sicchitano, head of wealth planning and advice delivery at SunTrust.
“Regardless of the past, couples need to discuss the financial reality of the present in order to plan successfully for the future,” Sicchitano added.
For those fearful of even discussing money — which could tarnish an otherwise blissful time for couples — Sicchitano recommended taking baby steps.
“You don’t have to make every financial decision right away,” Sicchitano said.
However, you should have an idea of your financial landscape, said financial adviser Anthony Ogorek. It is important to talk before marriage because people tend to marry later in life today, and most have a significant financial history, he said.
Ogorek suggested both parties should “lay their cards on the table.” It is important before marrying, he said, to know if your “partner has a lot of credit-card debt and a lot of student loans.”
Ogorek said these are key issues because “this is the most indebted generation.” He also cautioned that money discussions are needed because the law views marriage as “a financial union.”
Another adviser agrees that it is critical to talk money before marriage because each party should know the other’s financial views, especially if they differ.
“Savers are never going to be spenders, and spenders are never going to be savers. But it is important to discuss limitations and understand each other,” said CPA Bernard Kiely.
“Agreeing on a few decisions can start a couple on the path to good financial habits,” added Sic- chitano. He said those things can include a common strategy on annual retirement contributions, saving for a house and who will pay the bills and how.
Still, many may not see the need to talk money before tying the knot. Kiely warned that’s a big risk. He said a relative married “and tried to dictate money decisions. It was a disaster. I am convinced that is why he divorced.”