Debt acquired before marriage: Introduction
Last week we posted a video and blog about secret debt in marriage. It’s clear from various surveys and reports that many Canadians are not pleased with the way their loved ones handle their finances. The reality is that once you get married the proverbial horse is out of the barn. The time to have serious talks about your finances, your debt acquired before marriage and how to manage money, is before you get married.
Debt acquired before marriage: You need to discuss more than just wedding plans
Are you one of many couples that got engaged on Valentine’s Day? I’ll bet that right now you’re solely focused on wedding planning? I know it’s not romantic or fun, but sorting out money management issues should be right up there on your list of priorities. Love may have brought you together but finances can tear you apart.
Debt acquired before marriage: It’s all about trust
Managing finances as a couple means a lot more than deciding who’s paying for what, or opening a joint bank account to pay household bills. It’s all about trust, communication and transparency. Have you openly and honestly discussed pre-marital assets, debt, spending habits, saving goals and a budget?
- How much do you really know about your fiancée’s finances?
- How much do they earn?
- Do they live within their means?
- How much debt do they have?
- What’s their credit score?
- What are their assets?
- How many credit cards do they have?
- Do they pay their bills on time and in full each month?
- Do they have a line of credit (and in what amount)?
- Have they ever declared bankruptcy?
Debt acquired before marriage: Start on firm ground
If your soon-to-be spouse is not prepared to discuss these issues and agree on money management then you’ll be starting your marriage on shaky ground. According to a Citibank survey, 57% of divorced couples cited money problems as the primary reason for the demise of their marriage.
Debt acquired before marriage: We can help solve your debt problems
The time to deal with serious debt issues is prior to marriage. Contact the Ira Smith Team. We’re not marriage experts, but if you give us a call today you can be well on your way to starting your marriage without serious money problems Starting Over, Starting Now.
