Newlywed Financial Checklist: How to Harmonize Your Finances

Congratulations on getting married! As you prepare for this exciting new chapter, it’s a great time to review your financial situation and make sure everything is set for your future together.

Cash Flow Issues: Making Your Budget Work

Getting married is a perfect time to revisit your budget. With new expenses like shared living costs and possible changes in income, it's crucial to develop a new income and expense plan. What goals do you have for the future? Do you need to adjust how much you are saving in order to realize them? Discuss financial topics openly, such as career goals, saving, and spending comfort levels, to avoid future stress. It's helpful to identify and assign financial responsibilities—like managing cash flow, accounts, and investments. Most couples find that combining finances--as opposed to keeping them separate--helps align your financial goals.

Asset & Debt Issues: Protecting What You Have

As a newlywed couple, it's important to review your asset and debt situation. If you or your spouse have substantial debts, focus on paying down high-interest debt first and consider consolidating if it’s beneficial. Review and possibly open joint accounts to streamline your financial management.

Insurance Planning Issues: Ensuring Comprehensive Coverage

Review your health insurance to see if one plan offers better benefits and make sure to enroll within the special enrollment period after your marriage. Reevaluate your life and disability insurance to ensure adequate coverage for your new life circumstances. Don’t forget to update your homeowners or renters insurance to include your spouse and adjust coverage for any increased value of your belongings. Also, review your auto insurance policies to check for potential savings from combining them.

Tax Planning Issues: Navigating Your New Tax Situation

Your new marital status may affect your tax situation. Review your tax filing status, as Married Filing Jointly (MFJ) often provides more deductions and lower tax liability compared to Married Filing Separately (MFS). Check your tax withholding from your paycheck to ensure it's adjusted appropriately. Also, consider how your new filing status impacts your ability to contribute to tax-advantaged accounts and utilize any tax loss carryforwards effectively.

Long-Term Planning Issues: Looking Ahead

Marriage can lead to major financial decisions like buying a home or funding education. Plan now to secure adequate funding for these goals. It’s also vital to align and update your estate plans, including beneficiary designations on retirement plans, life insurance, and TOD accounts. Additionally, if planning to expand your family and one spouse might stay home, assess how this will impact your financial capabilities for large purchases and maintaining your lifestyle.

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