• Sharing your dreams and talking about your financial situation can help you define your goals as a couple. Still, some people find it hard to talk money, or about spending, saving and debt. If this is you, the earlier and more often you discuss financial matters with your partner, the more comfortable these conversations will be. Learn more now about planning your financial future.
  
  

  Tip: If you and your partner find it hard to talk about money, consider sitting down together with a financial planner. It is important that both of you know where you stand financially and have common financial goals. Learn more now.

  
  
• If you have a lot of debt, you will face some extra challenges as you start your life together. It’s important to develop a plan to tackle those challenges together. Why? Once you marry, bad debt becomes a problem for both of you. The money you or your spouse put toward paying down debt is not available for other things you might want to do as a couple.
  
  

  Did you know? One study of more than 21,000 couples found that two-thirds had problems related to major debt, and that debt was one of the top five financial stumbling blocks in marriage. Not surprisingly, one of the strengths of most happily married couples was that they did not have major debt. Even a small amount of debt increased marital discord.

  
  

How can you get off to a better start with your finances as a couple? How do you start the conversation rolling? Here are 7 things the experts say you and your life partner need to do to avoid money problems after the honeymoon is over.

7 simple steps for a better future together

1) Take a snapshot of your finances

Find out where you stand financially as a couple. Use bank statements, investment statements, credit card statements and other documents to list all your assets – what you own – and all your debts – what you owe. You can also get copies of your credit report. Learn more now about credit reports. You’ll also find information about planning and a planning worksheet here.

Be prepared for some surprises. Many couples feel awkward talking about money, so  they don't reveal their financial secrets to each other unless someone starts asking questions.

But secrets about money can destroy a marriage. So be honest about the cost of big purchases. Disclose all debts. Not telling everything about your money situation is a form of dishonesty. And as with most dishonest acts, the truth will come out sooner or later. When it does, your partner will likely feel hugely betrayed.

2) Update your key financial documents

Getting married is one of those few times in life when you will likely want to review and update most of your financial papers. The same thing is true if you have a long-term partner. Why? You may want to make some changes so that your loved one will have an easier time if something happens to you.

For example, now that you have a spouse or life partner, you may want to:

• change your insurance coverage
• update your will and estate plans
• add your loved one – and any children they may have – to your medical and dental plans at work, if you have them.

And do you remember those forms you signed when you opened a Registered Retirement Savings Plan (RRSP), or joined your company pension plan? You named someone who would inherit the money in these plans if something happened to you. If that person is not your spouse or life partner, you may want to update those papers as well.

Use this checklist to make sure you don’t miss any important updates.

3) Decide how you will manage your day-to-day finances

Will you keep separate bank accounts? Split up the bills that each of you will pay? Or will you put all your money in a joint account?

This is a personal decision, of course. Some people feel that having separate accounts divides a couple. It shows a lack of trust.

But the experts say that having your own money when married is important. Being able to save up and spend even a few dollars any way you want can reduce arguments about money. So you and your partner may want to each keep a separate account. Then open a joint account to pay all your shared bills. Learn more now.

4) Start to track your spending

Before you can create a budget and set meaningful financial goals as a couple, you need to know where your money is going. That doesn’t mean you should start pointing fingers about who spent what. Or, that it’s OK to start watching over your partner’s shoulder every time they buy something. But it’s important that you understand your spending habits as a couple and create a plan that you both can live with.

5) Save some of your income each month

For many new couples starting out, money is tight. You may feel you are living from one pay check to the next. You may have wedding bills still to pay. Or unexpected costs to set up house together. You feel there simply isn’t enough money left over to save. So what do you do?

The experts recommend that you adjust your spending so that you can save at least 10 per cent of your income. First, you need to build up an emergency fund. This will help you weather surprises like a car that breaks down, or a job loss. Next, start saving for your retirement. That can sound like a far-off goal. But saving early can make it a lot easier to save enough.

You’ll find more information here about different goals for your savings and a calculator that will helps you prioritize your goals.

6) Tackle your debts together

Once you are married, there is no such thing as ‘his’ debt or ‘her’ debt. Saying that your spouse's debt isn't your problem does not work. Even if the debt existed before you married, it can still affect your credit rating once you say “I do.” That means you may find it harder to borrow money in the future. It can also affect how much money the two of you are paying monthly in interest charges.

Remember: no matter who pays it off, debt from either partner means less money available for your new life together. So the experts say you should work together to pay off debt. Learn more now.

7) Take another vow: promise each other to live debt free

Would you borrow money to pay for a new television, a new car or a vacation? Many couples don't want to wait while they save up for these items. They tell themselves that no one lives any more without credit cards and debt. This may be true, but that doesn't mean it is a great way to handle your finances.

Of course, most people will have to borrow to buy a home. But you will have a lot less financial stress and worry if you avoid other debt as much as possible. And if you do need to borrow money, make sure you know how to do so at a lower cost. Learn more now.

Other Topics:

How will getting married change the way we handle money?

Should we put our money together or keep it separate?

How do we plan our financial future as a couple?