It’s wedding season, and some of your clients will be tying the knot.
It’s easy for couples to get caught up in planning the big day, but as their advisor, you must keep them on the right financial track. Also, make sure both are prepared to work on that plan.
So, instruct clients on these three points:
Both parties must be open about their finances before and after the wedding. If you only advise one of them, insist on meeting the other to make sure they’re equally financially literate.
Once couples have taken inventory of their assets, help them decide how to move forward. Ask these four questions:
- What will be considered independent property and what will become joint property?
- Which assets should be liquidated?
- Are they comfortable creating pre-nups?
- How are they going to pay for the wedding?
Preserving financial independence
As the wedding approaches, couples may find it hard to imagine a future where they aren’t together. But, you must stress the importance of each spouse remaining financially independent to some degree.
While they will likely buy their homes together, there’s no reason they shouldn’t have separate bank accounts and lines of credit. They should also do their own taxes. Both clients should attend advisory meetings so they fully understand their joint and separate finances, as well as how things would be affected should one of them die.