David Lerner Associates: Financial Equality in Marriage
Getting married is a very emotional moment. There is so much to do and organize that how you’re going to deal with your finances after you’re married is often not a major thought. However, once the honeymoon is over and you’re settling down to everyday life, this can become one of the most contentious aspects of a marriage.
This is especially true for women. They are often the partner who spends time at home and earns less over the course of her career. And as women tend to live longer, they’re more likely to spend time alone later in life.
There are several ways financial inequality can cause problems:
- One spouse gives up working to care for the children and is reliant on the other partner for money.
- Only one partner has access to the credit cards or bank accounts.
- One partner makes debt decisions without consulting the other spouse.
- Spending habits are out of sync – one partner is frugal and sticks to the budget while the other spends freely.
In order to achieve financial equality in a married relationship, economic power needs to be carefully balanced. Talk to your partner about these issues, so that you can resolve them.
Here are some areas that should be considered:
Access to information. Both partners should have free access to information about their respective businesses, debt decisions, savings, assets, and employment. Make arrangements with outside financial parties such as banks and accountants, so that this data can be given to either spouse.
A joint family bank account. Set up an account which both partners can access for everyday family finances. Work out a budget together, and make sure there are sufficient funds in that account to cover those expenses.
Pay and pension contributions. If one spouse works in the home, he or she should get a share of the overall income and an equal contribution to a pension fund. This is especially important for a woman.
Investments. Investments should be decided on together. High-risk investments that could jeopardize the family assets should be made only if both parties are in full agreement.
Putting these agreements in place before you get married can avoid many a conflict later on.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.
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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com
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