With so many young couples making the plunge into marital bliss, now is the perfect time to look at one topic that’s vital to a couple’s success: finances.

Financial disagreements are one of the leading reasons for divorce, so getting on the same page early is crucial. With that in mind, we’ve put together a few things every couple should consider as they plan for their lives together.

Pre-Marriage Financial Disclosure

Communication and transparency are vital in all aspects of a successful relationship, including finances.

Before officially tying the knot, have an open and honest conversation about your current individual situations, including your debt, income, and your values surrounding money. You might want to discuss what your parents taught you about money and what you do and don’t agree with—kindly, of course.

Stay away from criticism and judgment, and learn how to communicate effectively with your spouse.

“Marry” Your Accounts

After you’ve had that conversation, discuss the way you should join accounts after the ceremony (and honeymoon).

 What works for many couples is a fully joint account, which helps to avoid separation in any aspect of the relationship. The honesty, transparency, and togetherness of this path are very appealing to most people, and we would advise a joint account for most couples. This way can promote a wholly shared life and really showcase the unification of two lives that is marriage. 

Other couples prefer a hybrid account, which shares household expenses but allows for individual spending. This path can make room for more personal autonomy, which can work better and prevent conflict in some relationships.

Be careful to choose a system that allows for the most teamwork, unity, and transparency in your new marriage and is most beneficial for the unique relationship you have.

Make a Plan

You’re planning to spend the rest of your lives together, so it would be best to have a financial plan to facilitate long-range goals.

Your long-term plan should include goals for retirement, homeownership, and starting a family.

Before the big day, sit down and have a conversation about your goals for the future. Where do you want to live? What type of lifestyle do you wish to uphold? What can and can’t you sacrifice from your budget? These are all vital questions for understanding what kind of future you want and how you need to plan to achieve it.

Separate Retirement Accounts

Speaking of the future, one thing that can actually be beneficial is having separate retirement accounts. This choice is strategic and does not reflect a relational separation. 

Does one of your jobs offer a better retirement savings plan? Does one NOT offer one?

While combining financial accounts can be important, there are likely to be advantages to having two retirement accounts to better maximize your retirement savings. If you have sponsor plans, matching contributions, or tax advantages available from one employer or the other, make sure to utilize those.  Otherwise, open up a Roth IRA for yourself and start saving.

If you have a financial advisor, this would certainly be a topic to discuss with them. 

Make a Budget

Any good financial plan includes a budget. Start by adding your essential costs — housing, transportation, utilities, healthcare, groceries, debt obligations, insurance — and discretionary spending — gym, travel, dining out, shopping, entertainment, streaming services, etc.

If you aren’t sure how much you spend on various categories, track your spending for at least a month.

You might find that expenses you could afford while single need to be adjusted now that you’re married.

Deal With Debt

Early in your marriage can be a strategic time to tackle debt, since it is probably before the added expenses of kids or owning a home/business. If you have more disposable income when you are first married, focus on using that money to start tackling your debt.

Once you're debt-free, you'll have more available funds and can start working toward your next financial goal, like buying a home. 

Don’t Hide Spending

There’s the old joke about hiding the shopping bags before your husband or wife gets home. The reality is, hiding how you spend money can lead to serious problems.

Be sure that both of you are upfront about finances and that you are totally open about your current financial situation. If something feels off when you have the “money talk,” that’s a warning sign that something needs to be dealt with.

Don’t Ignore Concerns

No matter how much you love each other, you cannot ignore financial warning signs.

For example, keep an eye out for issues such as overspending, unwillingness to sit down and talk about finances, or a poor credit score.

Keep in mind that people make mistakes, and if your partner has been working on fixing past financial mistakes, you shouldn't hold it against them. Rather, you should remain vigilant.

Set a Minimum Cost for Discussing Big Expenses

It’s important to discuss major financial decisions with each other before making them. It’s also smart to set a dollar amount as to what needs to be discussed.

You probably don’t have to discuss every $2 candy bar purchase before making it. But $200? $500? $1,000? That’s something you may want to agree on beforehand.

Start an Emergency Fund NOW

Emergencies happen.

Major expenditures like storm repairs, replacing appliances, and buying new tires are part of life. There are also unexpected events like job loss, identity theft, a stolen credit card, or a family emergency.

That’s why it’s important to have an emergency fund; money set aside specifically in case of an emergency.

Set up a savings account that both of you have access to – ideally at a bank that isn’t your normal bank, so that it’s a little bit harder to access on the spur of the moment – and set up an automatic transfer so that a portion of every paycheck is deposited into it.

Leave this account alone. Let it grow. Save it for real emergencies. You’ll be glad you did.

Plan for the Worst

When the worst happens, you don’t want to leave your family scrambling to figure out the future. Getting life insurance can at least help ensure that your loved ones can cover the immediate costs and weather your loss financially.

There are different plans available, so be sure to find the one that is right for you and your family and fits within your budget. Additionally, be sure to update your beneficiaries on retirement accounts and insurance policies after your marriage. 

Beginning your marriage with a financial mindset fosters a relationship that flourishes and becomes a partnership in every sense of the word. Commitment to open communication and thoughtful planning allows both a life and the financial stability to support it to be built together. 

Having these difficult conversations and ensuring the alignment of these goals early on can lay a framework for both financial and relational success.