Have a financial planning date this Valentine’s Day

Couples are advised to plan their finances to make their love last on February 14.

In many cultures it is considered bad manners to discuss money. “If you speak to your partner about money, the perception is that you are a gold digger.


But if you’re marrying someone, you need to know not only what assets they have but also what debt they owe. Be aware that there is ‘good’ and ‘bad’ debt – long term debt such as a home loan is seen as preferable over high-interest short term debt like store cards.

Your future spouse’s financial standing would potentially determine the marriage regime you choose for example in community of property or ante-nuptial contract with or without accrual.

Financial planner at Alexander Forbes, Rita Cool advises that those in a relationship should do the following:

  • Plan a regular money date. Discuss your current financial situation and how your cash flow is doing.
  • Set up a savings reserve- Financial planning isn’t just how to pay accounts each month. Make sure you have a plan to pay debt as well as to set up a financial safety net if something happens to either of you.
  • Determine what’s yours, mine and ours.
  • Make it legal. You don’t have to marry someone if you are both comfortable with the status quo but what happens if you split up or one person dies? If you are living together get a partnership agreement to set out what happens to assets during good times and in bad.
  • Update where you are in terms of your family assets and protection.
  • Swap credit scores once a year to check if there might be something to be worried about or that needs to be fixed.
  • Compare company benefits to see if you are sufficiently covered for death and or disability benefits.

 

 

 

 

 

 

 

 

 

 

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