Diane Bourdo, CFP®, Private Wealth Advisor at Treehouse Wealth Advisors, was recently featured in an article titled “6 Money Moves You Must Make When You Get Married,” published in Yahoo! Finance.
Tying the knot is a big decision that calls for careful consideration in numerous areas, and this article focuses on the financial aspect of marriage. The piece recommends essential money moves that can help protect individual finances while setting newlyweds up for a smooth financial partnership:
Discuss a Prenuptial Agreement: A prenup is crucial for defining how assets and debts will be divided in the event of a divorce, which can help prevent future conflicts. Work with a lawyer to ensure the prenup is fair and legally binding.
Decide How You’ll Manage Day-To-Day Finances: You can choose between keeping finances completely separate, merging everything into joint accounts, or adopting a hybrid method with both joint and individual accounts.
Choose Separate Accounts: Separate accounts are beneficial for those hoping to maintain financial independence and avoid spending conflicts. However, it may not be optimal for family finances.
Open Joint Accounts: Joint accounts simplify budgeting and bill payments so couples can easily track household expenses. While a more transparent approach than keeping separate accounts, this can lead to issues if partners have different financial priorities.
Have a Combined Approach: A combination of individual and joint accounts often allows for aligned financial goals without sacrificing each partner’s autonomy and financial independence. Setting agreed-upon amounts to be transferred into personal accounts may be a beneficial strategy for a combined approach.
Consider Updated Estate Plans: Monitor and update your estate plans to ensure that, in the event of a tragedy, assets are distributed according to your wishes.
Diane provided further insight into discussing a prenuptial agreement, highlighting it as an important conversation. “Prenuptial agreements, once thought of as only for wealthy men entering a second or third marriage, said Bourdo, “have become commonplace for couples that want to protect not only their finances but also their assets and liabilities.”
Treehouse Wealth Advisors is a fee-only wealth management firm based in the San Francisco Bay Area, serving innovators, legacy builders, and impact makers. The firm provides personalized financial planning, investment management, and wealth advisory services, helping clients navigate significant life changes while working toward fulfilling and meaningful lives.
