When you get married, each spouse comes from a completely different financial background. Emotional and financial baggage complicate things.
The financial obligations that come along with children, complicate second marriages.
Talking about money makes people emotional. When you remarry, the emotions and stakes are even higher. One spouse may not be happy with the financial arrangements from their divorce. Perhaps they have to pay more child support than they’d like or even alimony.
Both spouses should discuss all these challenges so they don’t become financial obstacles.
Before you get remarried, these are the five money conversations worth having with your spouse.
1. Disclose all financial accounts, habits, liabilities, and even your credit
When you remarry, your divorce settlement plays a role in your financial obligations.
- Do you owe child support or alimony?
- Did your retirement account take a hit?
- How long will you pay child support or alimony?
Divorce affects every relationship differently. There are so many ways a divorce can affect your finances. That’s why you need to be open and honest with your new spouse. Discuss all financial accounts and liabilities.
While you may want to forget the past, it’s often impossible. The financial impact of a divorce will likely stay with you for years. Your new spouse needs to know about all financial obligations.
Once you discuss your accounts and liabilities, talk about your habits. Are you a spender or a saver?
Opposites attract, right? So it’s common that one spouse is a spender and the other is a saver. Talk about how you will balance that given your other financial obligations.
You’re going to have to have the money talk at some point. It’s better to do it before you get married.
Be open and forthcoming. Discuss and disclose everything. Just like you had a fiduciary responsibility to your old spouse, the same holds true in your second marriage.
You can get a free report once a year for free through Annualcreditreport.com. That’s the only true free site for a free credit report.This report will not include your score.
This report will not include your score. That’s ok. While a score is helpful, the report shows you everything you need.
A credit report includes all your loans, credit cards, debts, and late payments.
If you also want a credit score, you can get one for free through some credit cards. You’ll also receive one if you take out a loan.
Disclosure gives you a financial framework so you can develop financial goals for the future. That way that financial baggage becomes a distant memory.