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Marrying into debt
By Riki Unrau
You’ve found your perfect person and are ready to take that stroll down the rose petal lined aisle. Life has never seemed so full of hope and opportunity. Until…your new spouse’s credit card bills start arriving and suddenly you fear for the life of your perfect credit score.
Take a big breath and relax. Here are some simple tips to follow so that you can both protect yourselves.
Let’s Talk About Money Honey
It may not be an easy conversation to have especially if you are the one carrying around the bulk of the debt but it really should be a conversation every couple has before the big day. Both of you should be entirely aware of what you are marrying into as pretty soon his and hers won’t be just referring to bathroom sinks. Keep in mind that it is just money and pales in comparison to the commitment you are about to make to one another.
Do I Have to Marry Your Debt Too?
Simply put no. The debt an individual acquires even inside of the marriage does not necessarily translate to the other partner. Shared debt only comes into play when you have joint credit accounts, mortgages or other personal loans. If you are unsure of what belongs to whom have a look at your credit reports. If an account is on both of your reports then you have your very own credit baby. Aww, how cute.
Joint vs. Separate Accounts
This is entirely personal preference and depends on your individual spending habits. If you don’t want to have to run every purchase by your new spouse then separate may be the way to go. If you are in the camp of what’s mine is yours then joint may appeal to you. Whatever you choose, be sure to keep your partner in the loop of your finances. Secrets do not contribute to a successful relationship and they don’t stay secret forever.
Prenups Aren’t Just for the Super Wealthy
Discussing a marriage contract is not something that induces feelings of romantic euphoria but, if you are bringing a fair amount of assets into the marriage, it should be something you consider. No one thinks their relationship may end someday but it is best to prepare for any possible situation. Above all else you need to protect your individual net worth as that is a relationship that will truly last forever and always.
When it comes right down to it you are marrying your partner because of the bond you share… not the debt or assets you hold. Being honest early on will help to avoid awkward and uncomfortable conversations later and contribute to an open and healthy relationship.
If you are concerned with how to begin your credit relationship with your partner be sure to contact a financial planner or mortgage broker near you.
– Riki Unrau is a Mortgage Broker with CENTUM Homeward Mortgage Group Ltd.
