Getting married comes with many perks. You'll get tax breaks now and you may even qualify for Social Security spousal benefits later.
And if your partner is working, you'll have extra income coming in the house to support your goals. On top of that, you most likely won't have to worry about paying all the bills and managing retirement planning on your own. But if something happens to your loved one, it can throw your entire financial life off course if you don't plan ahead.
So before you jump the broom, here are two questions to run through so you won't end up in a financial rut later.
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1. What's your credit score?
Maybe you want to purchase a new home with your spouse. But if your spouse has a bad credit score, the journey to homeownership can be draining, to say the least.
Before you get married, it's important to think about the type of life you want to live and how credit scores will impact that. The average FICO® Score is 715 in 2023, which is generally considered good, according to Experian. A top-notch credit score can help you qualify for a mortgage and gain access to the best high-limit credit cards, among other things. If you and your partner are looking to stash away more cash for retirement, a good credit score can do the trick. It can help you save hundreds of dollars on monthly expenses.
But if your partner has a bad credit score, you want to get the scoop on what's going on in their financial life as soon as possible. You've probably heard that numbers tell a story and that saying holds true for credit scores too. A credit score can let you in on a person's financial history and habits. However, a credit score isn't the full story so you'll want to have a nonjudgmental conversation with your spouse to peel back the layers. If you and your spouse plan on retiring together, you want to make sure you're on the same page with your finances.
Credit scores can be a touchy subject so here are a few questions to help you ease into the conversation:
- What are your thoughts on credit scores?
- Are you familiar with how credit scores work?
- Do you know your credit score?
- Do you have specific credit goals you want to achieve?
2. Should we buy life insurance?
If discussing money with your spouse gives you anxiety, the thought of bringing up life insurance might make you feel even more uncomfortable. But it can be one of the best presents you can give your spouse. You can sleep better at night knowing that your financial life won't fall apart if something unexpected happens to your spouse. So let's cut to the chase and consider kicking off the conversation with these questions:
- How do you feel about life insurance?
- Do you think we need life insurance?
- Are there any specific goals that you want our life insurance to address, such as paying off our mortgage or funding educational expenses for our future family?
- When should we buy life insurance?
Life insurance is typically more affordable when you're younger. So it may turn out better if you get life insurance when you're 30 instead of waiting around until you retire. There's also a chance that you may not have as many policy options if you get life insurance later in life.
Consider what type of life insurance you want and how much you'll need. You can look into the best life insurance companies to find a policy that best meets your needs. The last thing you want is to be stuck with all the bills while you're retired and on a fixed income.
Getting married is a special moment in your life, but it's also one of the most important decisions that you will ever make. Before you tie the knot, make sure your spouse's financial plan and lifestyle makes sense for you now and during retirement. The more planning you and your spouse do now, the higher the chances you'll be able to enjoy a fulfilling retirement together.
