Read time: 7 to 8 minutes
A marriage or domestic partnership comes with some important financial decisions to consider before the big day.
- Communicate about your finances
Discuss budgeting, handling debts, goals, and other financial topics before the big day.
- Talk about your expectations and attitudes toward money
Having children, living with pets, taking care of parents, buying a home, or starting a new career all can have financial impacts. Understanding each other’s philosophy on money can help make sure you’re on the same page.
- Know your insurance coverage
Take the time to review medical, auto, life, and even pet policies.
Your new life together
Before the big day
Understandably, you may have a lot on your mind in the coming weeks and months. Enjoy this time, but don’t forget about the big picture. It’s important to prioritize financial considerations with your partner before you’re married—so you’re not blindsided later.
Here are some things you may want to discuss with your partner:
Money emotions and goals
- Emotions. It can be hard to talk about money, even with those you love. Understanding your feelings toward money may help you feel more comfortable when discussing finances with your partner.
- Approaches. Do you balance your checkbook regularly? Do you go to a bank or do online banking? Knowing how you and your partner manage money on a daily basis can be helpful as you start planning your financial future.
- Goals. What short- and long-term goals are important to you? Compare those goals to your partner’s. Where do you sync up, and where do you differ?
Current finances
- Debts. What you owe, like mortgages, car payments, credit card debt, personal loans, and student loans. Financial obligations like alimony or child support fit here too.
- Assets. What you have, like bank accounts, retirement plan savings, valuables, and family heirlooms. If you own a home, list the market value. Include your monthly salary here too.
- Credit. Check credit scores for you and your partner. Credit plays a big role in what you’ll pay when taking out a mortgage or a new debt.
Tip: Depending on your situation, you may want to consider having only you or your spouse on future loan agreements, since lenders generally look at the lowest (or worst) credit score. Keep in mind that, while this may lower lending costs, some states consider the other spouse liable for debts opened in their spouse’s name after marriage—even if they’re not cosigners. For more info, check out this Equifax article Myths vs. Facts: Marriage and Credit.
The advantages of combining finances or having separate accounts
You and your partner could have joint financial accounts, separate accounts, or some combination of both. Just make sure it’s clear who’s responsible for paying what bills. Understand the possible advantages of both.
Combining finances can:
- Make it easier to plan for goals.
- Make it easier to transfer resources in case of death.
- Build transparency and trust in the relationship.
- Make it easier to track spending if your household goes over budget.
Having separate accounts can:
- Provide a sense of financial independence.
- Keep both of you engaged and accountable with your finances.
- Help in case of divorce down the road.
Expectations about family, work, and life
- Family. If you expect children to be part of your new family, talk about this with your partner—including how many children you may want. Raising a child to age 17 could cost more than $310,000.*** Don’t forget about your pets. The average pet parent may spend from $610 to $3,555 a year on their dog.****
- Work. What are your career aspirations? Will they require you to go back to school, get a degree, or take out student loans? Make sure you have these conversations.
- Life. Inevitably, you’ll both face important financial decisions, such as a big purchase, down the road. Make sure you have the same understanding of how you’ll talk about these decisions before you make them.
A prenuptial agreement (if it’s right for you)
It may be uncomfortable to discuss. But if you’re considering a prenup, have this conversation early. Prenups can clearly define who owns what—and who has what debts. They may also help offer protection from your spouse’s debts. You may want to discuss this topic with your lawyer or advisor. To learn about post-nuptial agreements, check out this article.
Keep in mind: Prenups do not relate to potential guardianship issues with children.
Real estate, leases, deeds, and titles
- Your living situation may determine your next steps. Are you and your partner currently living together? If so, have a conversation about your future living situation. Will you rent, own, etc.? Are you and your partner currently living separately and each renting? Will you live with family or friends to save money before getting a place of your own? Check your current leases to see when they end—and if there’s a penalty for early termination. If living separately, consider adding your partner to the lease on the home where you’ll both live.
- Do you want to add your spouse to the deeds or titles of homes, condos, vehicles, and so on? It’s a good time to think about that decision.
A budget for you both
- How you spend money and what you spend it on can become a source of friction in a relationship. A budget can help you determine spending limits, savings targets, and how you can meet your goals. Look for a budget that works for both of you.
For help making a budget, check out this article.
A plan for debts
- Mortgages. Credit card bills. Student loans. Sometimes it can feel like debt never stops piling up. Discuss the debts you both have. And talk about a strategy to reduce them over time.
- For help finding a strategy to tackle your debts, check out this article.
Insurance policies
- Health insurance, life insurance, auto insurance, even pet insurance. Now’s a good time to compare policies to see what makes sense for you both.
- Ask some questions: Will you be covered under your spouse’s employer health insurance? Will they be covered under your insurance? You may be able to save money if you’re both covered under one plan. But weigh any potential cost savings with your desired health coverage.
- Don’t forget about life insurance—and maybe disability insurance too. They could offer protection in the event of an income loss. Also, see if consolidating your home insurance, auto insurance, and other policies could save you money. You may get discounts for the additional coverage.
One last tip
If you’re planning an international honeymoon, make sure your passports are valid for at least 6 months after your planned trip. If not, you may want to renew, as some countries require 6 months validity to enter the country. To learn more about considerations after the big day, check out this article.
Get help from Vanguard
Marriage is a major life event. So it’s a great time to see if financial advice is right for your future. If your retirement plan is at Vanguard, see what advice options we offer.
Whenever you invest, there’s a chance you could lose the money.
Vanguard does not provide individual tax advice. You should consult with your tax advisor before making any decisions as to your specific circumstances.
*Source: National Center for Health Statistics. 2022.
**Source: Nerdwallet. 54% of engaged Americans disagree with partner on financial goals. 2023.
***Source: The Brookings Institution. 2022. Estimate based on a child born in 2015 to a middle-class family with two children.
****Source: Rover.com. The cost of dog parenthood in 2023. 2023.
*****Source: U.S. News & World Report. Survey: 30% have dealt with financial infidelity. 2022.
******Source: The Harris Poll. More couples are signing prenups before saying “I do.” 2022.
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Advice is provided by Vanguard Advisers, Inc. (VAI), a federally registered investment advisor. Eligibility restrictions may apply. VAI cannot guarantee a profit or prevent a loss.
