You should plan to talk about money before you get married to avoid any big surprises afterward. And keep the lines of communication open so that your finances continue to mesh smoothly.
>> Set your goals. You may need to find middle ground on certain financial values — how much risk to take with your investments, how vigorously to save, how freely to use credit. Set aside a portion of each paycheck to fund your highest-priority goals — perhaps saving for a house or socking away money in a 401(k). And start stashing money in an emergency fund with the goal of accumulating at least six months’ worth of essential expenses.
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>> Merge accounts (strategically). Some couples prefer to keep separate checking accounts but one joint account for household bills. See whether you can qualify for a better banking package now that you’ll have more money in the bank.
>> Review your investments. Look at taxable brokerage accounts, mutual fund accounts and retirement savings to make sure your combined portfolios are still diversified and coordinated to reach your goals.
>> Decide who will handle the bills. Will one of you be in charge of paying all of the bills each month, or will you divvy up the task? Using a budgeting site, such as Mint.com, can help you focus your spending and organize your accounts. You can automate bill paying through your bank.
>> Coordinate benefits. If both of you have health insurance through work, see whether it would be better if you or your spouse switched to the other’s coverage. You can also mix and match — for example, you could sign up with your employer for health insurance but get dental coverage through your spouse’s plan. And don’t forget to update beneficiary designations.
>> Check up on insurance. If you need each other’s income to pay the bills and reach your financial goals, you need life insurance. Use the life-insurance-needs calculator at kiplinger.com/tools to determine how much to buy. Pool your auto insurance coverage, but don’t just add your spouse to a current policy; shopping around may turn up a better deal. Adjust your renters or homeowners insurance to cover all the new stuff you’ve just acquired. Buying auto and home insurance through the same company could get you a discount.
>> Don’t forget about taxes. If you tie the knot by Dec. 31, the Internal Revenue Service considers you married for the full year. Ask your employers to adjust your withholding. If you changed your name, let the Social Security Administration know by filing Form SS-5.
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