Engaged or Moving in Together? Time to Talk Money!

Talking about money is critically important — 38% of divorces involve disagreements about money.

Communication is key 

• Don’t keep spending secrets — know each other’s debts and obligations beforehand. 

• Discuss large purchases in advance. 

• Set a regular schedule for discussing money to make sure you’re both on the same page. 

Who should pay the bills? 

• Find out who is good at paying the bills, saving, and managing a budget. 

• Decide if you are comfortable with a joint account for bill paying. If not, consider dividing up the bills where one pays some of the bills and the other pays the rest. 

• Consider income differences. 

• Discuss how you both have handled money in the past. 

• Discuss some of your money goals, such as buying a house, earning a graduate degree, having children and others. 

• If and when you have children, will you both continue to work? 

Make a budget 

• How much income do you each bring home? 

• What are your monthly expenses?

  • Review your credit card and bank statements for the past 12 months. 

  • Don’t forget occasional expenses like doctors and insurance. 

  • Are there opportunities for savings? 

• Pay yourself first by contributing to your employer retirement accounts. 

• Housing should be less than 28% of take home pay.2 

• Total debt should be less than 36% of gross monthly income.2 

• Make sure you have 3-6 months’ worth of living expenses saved in an emergency fund. 

• Establish a joint savings account for your goals like a new car, home, children and/or vacation and agree on a monthly amount to save. 

• Try to pay off your credit cards every month. 

Know your credit ratings 

• A credit rating of 680 or higher is generally considered good. 

• A lower rating may negatively affect your ability to get car loans and mortgages. 

• With higher ratings, your interest rates may be lower. 

• Some things to do to improve your ratings: Pay your bills on time. 

• Reduce credit card debt to less than 30% of available credit.3 

• To avoid higher interest charges, try to pay more than the minimum amount due every month. 

Who is going to own what assets? 

• Will investments, insurance, and other assets be left to each other? 

• Will the house and cars be in joint name? 

• Are there assets that have to stay in your respective families? 

• See an attorney to ensure assets are left to your desired beneficiaries.