| Whether you are thinking of getting married, you are a | | | | person’s feelings on separate credit lines, joint |
| newly wed, or you are a seasoned couple of marital | | | | lines, becoming an authorized user and/or co-signing |
| bliss, you must have a joint talk about debt and credit. | | | | any loans. Similarly discuss checking and savings |
| Debt communication is simply not an option. This debt | | | | accounts.e. Discuss who has what assets and should |
| and money talk article can open doors of | | | | they be kept separated or joined. (Should there be a |
| communication and enhance the success of your | | | | pre-nuptial agreement?) |
| marriage. In the case of pre marital situations, it may | | | | 2. Goal Setting - where are you going and how will you |
| allow you to realize "problems" before they | | | | know when you get there?a. Set specific goals |
| even start. | | | | together for the next year, 5 years, and 20 years.b. |
| In David Olson’s 2003 National Survey of Marital | | | | Read and discuss 5 Proven Steps To Budget |
| Strengths we learn that the average adult spends | | | | Motivation (as well as other Budget Management |
| 80% of waking hours earning, spending, or thinking | | | | articles under Article Index above.)c. Commit a plan of |
| about money. In a study of 21,501 couples Olson found | | | | action to paper stating how you will be accomplishing |
| that 66% indicated indebtedness was one of the top 5 | | | | your goals.d. List contingency plans when the inevitable |
| major stumbling blocks to their marriage. | | | | “never expected emergency” pops up. |
| Conversely, he discovered "one of the unique | | | | Budgeting and CEO - Who will carry the ball?a. Who |
| strengths of the majority of happy couples was that | | | | will have responsibility for paying the bills and balancing |
| they did not have major debt problems." Similarly | | | | the checkbook?b. How will you deal with existing bills? |
| the Administration office of the US Courts tell us there | | | | Especially for newlyweds? Will each continue to pay |
| were 1,661,996 bankruptcies filed in Fiscal Year 2003 | | | | individually or will you join incomes to meet |
| (up 7.4 percent from the 1,547,669 filings in Fiscal Year | | | | expenses?c. Together plan out your budgetd. Frankly |
| 2002). Bankruptcies have exceeded 1 million filings | | | | discuss “what if's”. |
| annually since the early 90's and show no signs of | | | | 1. No one plans on bankruptcy but what if the bottom |
| letting up. | | | | falls out? Will you both declare so the one spouse |
| All of the above strongly indicates one thing. Far more | | | | does not have to absorb the other's debt? |
| financial communication must occur in the relationship. | | | | 2. What if divorce does happen? |
| To overcome some of these staggering statistics, I | | | | 3. What if one spouse dies or becomes disabled? |
| firmly believe each couple has a superior chance of | | | | “What if...” and fill in the rest. |
| surviving separation and/or divorce because of | | | | 4. Will one person be assigned to listen to the partner |
| financial stress, by simply opening the doors of financial | | | | but ultimately make the final financial decision or will |
| communication. I strongly suggest 4 areas of | | | | both have an equal voice? |
| communication for any couple regardless of how long | | | | Estate Planning |
| they have been together. But the sooner in a couple's | | | | 1. Discuss the existing life, health, and disability needs of |
| existence that communication occurs, the greater the | | | | each partner. Does it meet current and future needs? |
| opportunity of success for that couple and the less the | | | | 2. Talk to a reputable health and disability |
| stress level within their lives. | | | | representative and determine your needs. |
| Here then are 4 suggested areas of financial | | | | 3. Based upon your future goals, what investment |
| communication: | | | | strategies do you intend on initiating and when? |
| 1. Hidden Debt and Personalities - openly and without | | | | 4. Who will do your taxes and do you need tax |
| prejudice or pre-judgmenta. Share each other’s | | | | strategies to offset tax payment? |
| credit report and ask questions about past | | | | 5. How will you develop an emergency savings and |
| performances. For example: Why are there late pays? | | | | how much will it be? |
| Why is there no credit history? Explain the bankruptcy. | | | | 6. Are there education needs expected? |
| What is this judgment about?b. Determine and discuss | | | | Now for the ultimate marriage counseling tip. |
| each person's ability to be a spender or a saver. Do | | | | Reschedule this exact same discussion for next year |
| you have a tendency to live paycheck to paycheck or | | | | and the year after and the year after that. Just call it |
| do you have a consuming desire to put at least | | | | your "Annual State of the Union Discussion". |
| something away for a rainy day? Do you track every | | | | Readers will probably be interested to know Mike, the |
| dime or is anything under $10 unimportant to track?c. | | | | author of this article, also offers a free debt elimination |
| Discuss any debts not listed in the credit report.d. | | | | mini-course via e-mail. You can enroll at Debt Free In |
| Determine who has what credit lines and what is each | | | | 7.5 Years. |