Pattie Lovett-Reid: How to have the 'money talk'
There often comes a time when love and money intersect, which makes it even more important to have the “money talk” sooner rather than later.
For many couples, financial stress can have a huge negative impact on their lives, especially given the amount of debt so many are carrying. Leveling the financial household playing field is key. Rarely will you find couples with equal income-generating potential and aligned levels of financial literacy.
Financial literacy is key. In fact, Shulman Law has found more relationship break down over financial cheating than actual cheating. And due to lack of financial competency some may decide to stay in a relationship longer than they should have and may even be subjected to financial abuse. Also, should a divorce happen, the costs will run much higher if a forensic accountant is needed to prove a case for you.
So how do you have the money talk?
- Disclosing your incomes, debts and assets.
- Discussing goals and expectations of each other.
- Considering a prenuptial or co-habitation agreement.
Love and money for many, but not all, go hand in hand. You may be building a life emotionally and financially together never expecting it to end; however, statistics suggest it could and does happen. For others, there’s never a desire to comingle their assets.
There is a growing trend that more couples are interested in entering into marriage contracts with a goal of maintaining companionship and not a financial partnership, according to Diana Isaac, an associate lawyer with Shulman Law.
Regardless of how you hope to live your lives together, the common denominator for success is the “money talk.”