For young couples, this could mean existing education loans or even helping to finance their parents' mortgage etc. Clearing your debts before entering into marriage has both emotional and financial benefits.
Emotionally, the couple would not feel as stressed as they would be given the sheer amount of cash that they have to fork out for things like wedding, house purchase and house renovation.
Financially, clearing existing debts could also help to build a good credit score with the bank for a higher housing loan amount.
Between the couple, it is likely that one earns more than the other. As such, it is important to communicate how expenses should be shared as well.
When it comes to common expenses, make a list of the essentials such as groceries, utilities and other bills and determine each person's contribution to these expenses.
Once the budget for the smaller expenses has been settled, you should discuss what your short-term and long-term financial plans are.
Some basic pointers to consider:
When the main income earner is down, the financial and emotional stress on the other spouse can be too much to bear.
Besides being the caretaker of the spouse who is ill, he/she will then have to ensure that medical bills are taken care of, while making sure that there is enough for their daily expenses and mortgage loan repayment.
As such, proper insurance planning can significantly help a couple tide through the rainy days.
People who have built up a high net worth prior to marriage, or who have inherited a significant amount from their families, would need to pay special attention to wealth planning and preservation strategies.
Some basic pointers to consider:
Many couples shy away from discussing about their finances despite it being one of the pillars that can make or break a marriage.
Today's globally connected society also poses various other challenges between a couple - how to procure cross-border insurance coverage for their spouse of a different nationality, how to comply with foreign tax rules or repatriate business returns, just to name a few. Such issues can be complex but there exists sophisticated digital tools and data analytics that can help you gain clarity and have a decisive edge in your financial planning.
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