4 things to talk about before you get married

26 Aug 2016

So you’re getting hitched. Congratulations! But before you ride off into the sunset together, have you talked about how you’re going to manage your money as a couple?

According to money expert Bessie Hassan from finder.com.au and creditfinder.com.au, financially speaker, things are more complicated when you marry in your 50s compared to when you get hitched at a younger age.

By this stage, it’s likely that you’ll have accumulated more assets and savings and either of you may already have a family to consider, she says. This makes it more difficult when it comes to deciding whether you’ll merge your finances with your new spouse or keep things separate.

“Older couples may also be more stuck in their ways when it comes to their financial behaviour and money habits. This can also make it difficult particularly if the partners have different credit histories, spending behaviour, and financial goals,” Bessie explains 

Here are four things to talk about before you say your ‘I dos’.

1. Be honest about your finances

Like all relationships, honesty is often the best policy when discussing each other’s finances, especially at this age, when you have had years of money management experience.

“Review each other’s financial positions when it comes to income, debt and any other liabilities and look for ways to improve your financial position. For instance, you may want to combine your credit card debt by applying for a balance transfer so you can pay down your debt faster,” says Bessie.

“You should also discuss each other’s credit histories and ongoing financial commitments so that everything is out in the open.” 

2. Talk about the kids

If either of you have children from a previous relationship, you may need to be upfront about whether there are child support payments that need to be made and how you plan to manage expense such as school or university fees, advises Bessie.

3. Think about estate planning

It’s probably the last thing you want to think about, but John Walker from Retireinvest suggests that a newly-married couple discusses what would happen if the relationship ends or if one dies before the other. This can be a particular tricky process when it comes to blended families, so it’s best to discuss this as early as possible.

“It’s crucial that a couple talks to a well-qualified financial planner and then proceed to an estate planning expert who’s a solicitor,” he suggests. “This will minimise any tensions that can sometimes arise in families, especially if everyone is pretty clear of what will happen in the future.”

4. Superannuation

“When it comes to superannuation, you need to decide whether you’ll keep your superannuation separate such as in a self-managed super fund (SMSF) or if you’ll set up a SMSF with your new partner,” says Bessie.

“Your partner may have a different risk appetite so if you’re unsure about the best course of action, speak to a financial advisor.”

It’s also important that the two of you work out a retirement plan so you can build your superannuation together. And don’t forget to review your will, insurance policies and superannuation to reflect your new marital status.