It’s money that matters |

It’s money that matters

Here’s the truth: Two people who live together are going to bang into each other once in a while.

You’re getting married to someone you love. Always remember that it’s someone you love ” then start talking about money. Money causes more trouble than almost anything else.

– Resources and goals.

– Do you want to combine your bank accounts, or do you want to continue with personal accounts? Joint accounts give you both easy access to your money, while helping you avoid fees because you’ll have a higher balance in your joint account. Personal accounts help you maintain a comfort level because it’s your money, helping you maintain a sense of independence.

– Taxes matter. The standard deduction for married couples filing jointly is around $10,000. That’s roughly equal to the combined deductions of two people filing separately. Filing jointly and itemizing your tax returns could be a great option for newlyweds. Two people are likely to have more deductions than one person filing alone. Keep track of any deductible expenses. Those include anything from charitable contributions to the state and local taxes you pay. If you purchase a home together shortly after getting married, you can also deduct some of your mortgage expenses and your mortgage interest.

– Adjust your W-4 form at work to withhold more from your paycheck each week. By increasing the amount of money withheld from your paycheck, you can avoid the pitfall of a big tax bill come April 15. On the other hand, don’t withhold too much. It’s your money and the money you get on your tax return is money you don’t have through the year for investments and expenses.

– Health insurance is important and you need some. It’s also becoming more and more expensive. Employer-sponsored plans are usually a less expensive way to go. One policy that adds a spouse as a dependent is less expensive than two separate policies with no dependents.

– Life insurance is another question you must ask each other. If you bought a house together, life insurance could ensure that one spouse can still make the mortgage payments should the other pass away. If you already have children, you absolutely need life insurance. If either of you already has life insurance, it needs to be updated as soon as possible after the wedding. Don’t walk up the aisle and straight to your insurance agent’s office, but get to it quickly.

– What do you own already? If it runs along the lines of a home or expensive jewelry, you’ll want to ramp up your homeowner’s insurance. And for convenience and economy, put everyone’s vehicles on one insurance policy. It’ll almost always mean lower premiums. Also, some insurance companies say married people are safer drivers, which also leads to lower premiums.

– Yes, you love each other, but you may need some sort of prenuptial agreement. If you already have assets or children from a previous marriage, a prenup can be the best way to protect those assets, the children and their future if you pass away prematurely or end up divorced.

Support Local Journalism

Support Local Journalism

As a Summit Daily News reader, you make our work possible.

Now more than ever, your financial support is critical to help us keep our communities informed about the evolving coronavirus pandemic and the impact it is having on our residents and businesses. Every contribution, no matter the size, will make a difference.

Your donation will be used exclusively to support quality, local journalism.

For tax deductible donations, click here.

Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User