The Money Mentor

I’m getting married. How do I protect myself financially?

Last Modified on January 13, 2023

I don't want to lose everything I worked hard for in case it doesn't work out...
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Thomas Taveras

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Dear Tom,

I might be getting married in a few months and I couldn’t be happier, but I’m also a little worried about my finances. I’ve been working hard to get to where I am today and I don’t want to lose everything in case things don’t work out.

My fiancée and I have discussed our finances and we’re on the same page, but I want to make sure I’m doing everything I can to protect myself. Can you give me some advice on how to protect my assets and plan for the future?

Dear Worried,

Firstly, congratulations on your upcoming nuptials! It’s natural to have some concerns about the future, especially when it comes to finances.

In regard to your question, I recommend that you carefully consider and discuss with your partner whether or not to sign a prenuptial agreement before getting married. Having open and honest conversations about your finances, assets, and any potential liabilities before marriage can be beneficial and a prenuptial agreement can formalize and protect those interests.

However, it’s important to keep in mind that a prenuptial agreement is not a guarantee against potential problems in the future. It’s best to enter into a marriage with the expectation of it lasting a lifetime, and if you decide to have a prenuptial agreement, make sure to consult a lawyer to ensure it is legally binding and fair for both parties.

The most important thing is to ensure that you and your partner are on the same page when it comes to finances and commit to working together to achieve your financial goals.

I would recommend the following steps for a couple about to get married:

  1. Have open and honest conversations about finances before getting married. This includes discussing current debt, credit scores, income, and spending habits.
  2. Consider creating a prenuptial agreement. This can help protect individual assets in case of divorce. Most prenuptials will set aside money that gets invested, and if you ever get divorced, that money is split based on your protocol set in the prenuptials.
  3. Make a budget and stick to it. Make sure that both partners are on the same page when it comes to spending and saving.
  4. Build an emergency fund. This will help ensure that unexpected expenses won’t derail your financial plans.
  5. Consider consolidating or paying off debt before getting married. This can help avoid future financial stress.
  6. Create a plan for long-term savings and investment, such as for retirement.
  7. Review your insurance coverage, including health, life, and disability insurance.
  8. Lastly, make sure you’re aware of the legal implications of marriage in your state, such as how property is divided in case of divorce.

Remember that communication is key, and it’s important to have regular check-ins to ensure that both partners are on the same page when it comes to financial goals and plans.

I want to remind you to take care of yourself and those around you. Remember to be kind, be understanding, and always strive to be the best version of yourself. Remember that Life is a journey and it’s not always easy, but it’s always worth it.

I want to leave you with a quote, “The greatest gift you can give someone is your time, because when you give your time, you’re giving a portion of your life that you’ll never get back”. So, spend your time wisely and make the most of it.

Until next time,
Tom

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