Divorce Finance: Five Tips For Marital Financial Success

Forbes:

June is the most popular month of the year for weddings.

But, along with all the talk of something borrowed and something blue, I can't help but interject a few words of practical financial advice for all those women about to be walked down the aisle.

Read the whole story: Forbes

Comments

[715W]

01:29 PM on 06/13/2011

A few other idea that apply regardless of gender -- or where the to-be spouses view themselves as equal financially:

1. Document your complete financial situation as of the date of the marriage -- collect all of your account statements. Put the documents in a few places where you'll have that information if you ever need it.

2. Lock down your personal accounts as of the marriage date. For example, put your marriage-date balances in your retirement or investment accounts into a separate sub-account; do not make any contribution to that sub-account during the marriage. Have all future investments go into another/new separate sub-account. You will be able to see what you had at the time of marriage and how it grew.

3. Buy a Roth IRA in your own name before the wedding. Plan to never touch it in the marriage.

4. Run the Kelly Blue Book for your vehicles and document the value. Photograph your possessions with a digital camera. If you already own real property, get it appraised. If you have gifts and heirlooms and personal property that is of value, document it. Possibly get an appraisal made; at least get an inventory of it as of the time of marriage.

5. Keep your accounts in your own name, if possible. Create new joint accounts as a married couple and use those accounts for marital expenses. Not every account must be joint. Don't be deceptive; but have your accounts in your own name.

[715W]

01:17 PM on 06/13/2011

CONTINUED

First of all, avoid the prenup (claim that it is "unromantic" or if you get one, be slow and see if you are asked to sign it on the wedding day if you can drag it out that far).

Other advice for to-be brides moving up the financial ladder in a marriage:

1. Have the to-be groom pay down all of your debts, credit cards, student loans, car loan, etc. as soon as possible after the wedding -- before the wedding, if possible.

2. Keep one private account of your own (put as much money into it as you can before the wedding) but never use the account after the marriage except to deposit gifts received from family. If asked, say it is your "mad money"; but never spend your mad money.

3. Ask to have all accounts of the to-be groom immediately upon marriage converted to joint accounts (say "if anything happens to you, dearest, I'll need to be able to pay the bills so we need to have those accounts in my name also"). If confronted with the double-standard of your own private account, brush it off.

4. Ask if the to-be groom would be so kind to set up an investment account for you in your own name (say you want to "learn about investments").

5. Get his life insurance in your name as beneficiary.

6. Get him to prepare a will that names you as full beneficiary.

[715W]

01:03 PM on 06/13/2011

This is the advice from Forbes given to brides-to-be:

1. Communicate about finances.
2. Consider a prenup.
3. Preserve a measure of financial independence.
4. Weigh options for filing tax returns.
5. Maintain access to all marital money.

This is fair advice.

But if the groom-to-be has more income/assets than the bride-to-be, the bride-to-be can do better than that, I think.

CONTINUED

[Chris Sirhc]

09:33 PM on 06/07/2011

As unromantic as it may sound do a credit check on your future spouse. On one of those interminable PBS fund raisers the financial advisor Suzie Orman was asked by a man if he should be concerned about his future bride's sizable student loans. Suzie cheerfully told the guy to go ahead and marry the woman because he was not responsible for her premarital debts. Legally true but not in practice. In equitable distribution states debt ridden spouses are awarded an out sized distribution on divorce. But to the list of liabilities to avoid like court ordered alimony and child support; I'd add student loans. Why? Unlike any other personal debts, they may not be discharged by bankruptcy. They will be carried until paid off or death.

[WSAY]

10:09 PM on 06/09/2011

Do you have any other illegal ideas for us? Better hope your future spouse doesn't do an "Education Check" on you.

[Chris Sirhc]

11:00 PM on 06/09/2011

Credit checks illegal? I must have missed that headline!

[TheParson]

08:14 PM on 06/07/2011

Real positive. Funny that it's directed to women, who will eventually pay him with her ex-husband's money.

here's some divorce strategy advice for men who are about to tie the knot: RUUUUNNNN!!!!!