|
Research has shown that financial matters cause more problems in relationships than infidelity, alcohol and drug addiction or the in-laws. It would appear that the biggest hurdle on the path of true love is mixing money and love.
The most solid relationship can be challenged over financial power struggles. It would seem that control in your relationship is on a par with how much money you earn. A successful mixture of love and money between you and your partner is a delicate balance.
These days both partners usually contribute to the financial reserve. Even though women have progressed greatly towards equality at work, men still earn more than women. Women are more careful with their money whereas men are more likely to take risks with things such as investments. Because women are more careful with investments and such like, it takes them longer to earn the money from said investments. Attitudes in finance seem to be influenced by things such as religion, age, family upbringing and the individual’s own mistakes and successes.
We have all done the mundane financial things like opening a bank account, keeping the utilities switched on, paying the mortgage and the council tax etc, but when you get married or move in with someone else, these simple, mundane tasks become much more complex.
One of the first major decisions you have to make is do you have joint or separate bank accounts. If you don’t have a joint account how do you split the bills? Should each of you pay half the bills from your own accounts or would it really be easier to have a joint account and pay the bills from that? Then that begs the question should you be able to access your partners bank account? If when you entered the relationship you had an asset, say a house or car that you both use and is still being paid for, should that be an expense that is shared?
Depending on your age, how many dependents you have, and your economic status, financial advice and information for the over fifties varies significantly.
Individual circumstances and situations are different but some general information follows.
These days more people are deciding to keep separate accounts but there are still some couples that use joint accounts. How the combined money is dealt with on a day-to-day basis can be a challenge.
There are benefits to keeping funds for property and other assets in one name, but there are drawbacks to keeping all of your money separate. It also takes away from the fact that you are a couple rather than just two people living in a house share. If you intend borrowing or investing together, joint funds will also give you higher borrowing/investing potential.
You need to devise a financial plan but most people find it difficult to get the right balance for long time. The first step is to discuss your money management and the second is setting your goals.
You need to review your financial status and make sure that you both understand and are happy with the control your “your money and our money”. Do both you and your partner understand all about your credit cards, insurance, investments and banking systems?
A new life together should routinely include the following:
- All kinds of insurance should be reassessed including health, life and car.
- Amend any pensions or insurance policies so that your partner is the beneficiary.
- Notify the tax office of your marriage to have your tax code amended.
- Any pension/retirement benefits or child maintenance etc from a previous relationship should be assessed.
- Remember that your new partners income may be taken into account if you are still paying maintenance for children from your previous relationship.
It may be necessary for you to speak to your accountant, lawyer, insurance agent, banker or your employer in order to complete these tasks.
Your main aim is to save money and protect your rights. You should start your investigations before you are married and ensure that follow through till all your finances are in order.
Only registered users can write comments.
Please login or register. |
Child Suppport Agency
Written by quidnunc on 2006-05-16 10:21:41
In addition to the advice given in 'Love, Marriage, and Money' I would add the following.
If you are moving into a new relationship where there are children from a previous marriage, then even more care should be taken over investigating what the financial arrangements are for thos children. Only too often, people who have responsibility for a second family find themselves in dire straights because the CSA is brought into the picture.
There is help available on the subject of Child Support and if anyone out there is having problems send me a message and I will give details of where this can be had.
| Cjay
Written by Guest on 2006-06-15 23:41:24
I appreciate what quidnunc is saying about investigating financial arrangements for children from your new partners previous marriage. Yes it could become expensive for you if the CSA get involved etc. However, the absent parent must be held responsible for his/her children and they must pay for their child/children’s upkeep.
Parents who have separated should also, before considering a second family with their new partner, ensure that they are able to support the child/children they already have. Too many times absent parents have gone on to have more children with their new partner and the children from their first marriage are left with nothing. If you cannot support the children you already have you should not even be considering venturing into parenthood again.
The same should be said for parents who have care for children from their previous marriage. If they then go on to have further children with their new partner, they should ensure that the children from their previous marriage have everything they need. All too often these kids have to go without because the parent with care uses all monies provided for the children from the first marriage, on the children from the new relationship. An absent parent who pays child support expects the money they provide to be spent on their children, not used to finance a child that they have nothing to do with.
|
|
