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Different considerations are in play when a couple decides to get married depending on their age and financial resources.
Older married couples may have children from a previous marriage, own a home and have separate assets such as investments, savings accounts and checking.
When young couples marry they may wind up sharing ownership of a house, bank accounts and other assets.
In either case couple’s may have separate advisors to assist with their financial matters such as taxes, accountants, attorneys and investment advisors. Merging households can be a tricky business especially when each of the partners has their own advisors.
Couples need to be strategic when it comes to choosing advisors who best fits both partners’ needs.
It is not uncommon with older couples to maintain their own assets and advisors especially in a second or third marriage. Those entering into second or third marriages might want to consider a prenuptial agreement with each partner hiring his or her own attorney to represent them.
It is strongly advised that couples prior to marriage discussing their financial situation including debts they might bring into the marriage or partnership. It is also mindful to discuss what happens should the marriage not work out.
It common when a couple gets married to combine assets and that is not always a good idea. It might be ideal to have a combined account for common expenses and separate accounts for other purposes. The ultimate decision should be couple specific and item specific.
It is a good idea at tax time to discuss the advantages and disadvantages to filing married filing jointly or separately. A good strategy is to prepare both ways and see which is more advantageous.
Personally I like the him, hers and ours approach. Which ever way you go remember keep in mind that the most practical is not always the best emotionally.
Daniel Iuculano, AAMS CMFC
Accredited Asset Management Specialist
Chartered Mutual Fund Counselor
