10 financial things you need to know before tying the knot

The sad truth is … the person you marry is rarely the same person you divorce. Statistics show that two in three marriages today end in divorce, with money being the main cause of unhappiness in half of those cases.

Kabelo Makeke, head of customer financial solutions, personal banking at Standard Bank said, “It’s important that you find a way to discuss money in a calm, rational manner well before the big day.”

He suggested that couples get into the habit of talking openly about budgets and long-term savings goals.

Here are 10 things you need to know before you say ‘I do’:

1. Keep separate current accounts and credit cards. Don’t accept responsibility for your partner’s overspending.

2. In the early stages of your relationship, find out how much debt you will have together as a couple.

3. Consider having a retirement fund. Usually, one salary is not enough to support two people when it comes to retirement.

4. If you are both earning a salary, agree on who is going to pay for what. Try split everything equally.

5. Any bonuses should be divided into the respective savings plans or put towards debt repayments.

6. Consider having both of your names on the bond registration papers.

7. Try and make sure each of you receives ‘pocket money’. The amount doesn’t have to be fixed or large.

8. If there are differences when it comes to spending and one is more conservative than the other, try to reach a common ground.

9. If the one partner is being secretive about spending, savings or earnings, the other should be assertive as he or she has a right to know. If it continues, the other party should contact their broker to get the information. A couple needs to be open when it comes to the family’s finances.

10. Sometimes it helps to get an unbiased second opinion. Find a certified financial planner to help define goals and lay out a strategy. They may also be able to mediate solutions.

“Ideally, people should start planning for their own financial future from the day they start earning a salary. Marriage should never take away a person’s financial independence but assist in building a stronger financial situation together, empowering both parties,” concluded Makeke.