Are you financially compatible?

Soon-to-be-weds are often so blinded by affection they're either too busy cuddling or too afraid of a lover's quarrel to talk money. Though not as glamorous, having your financial ducks in a row before the wedding is just as important as finding that fabulous dress. And while a dress is for just one day, financial security will set the tone for a lifetime.

"Think of it as relationship insurance," suggests Elaine Weiss, president and CEO of the Illinois CPA Society. "Arguments over spending could leave you singing the wedding bell blues before the band has packed its instruments." Money is a stressful topic and amidst nuptial stress, it's often pushed off until a later date, a mistake that often causes strife once the honeymoon is over.

"If you want to make sure that the honeymoon lasts longer than the ceremony, agree upon a plan that both of you can live with before you officially become a couple,"Weiss says.

Take the following quiz from the Illinois CPA Society. Answer "true" or "false" to each of the following statements to determine how financially compatible you are with your mate:


1. We are aware of and comfortable with each other's money personalities. 
o T  o F

Some of us grew up in households where parents watched every dime; in other families money flowed freely. Some people are natural spenders; some are savers. Understanding your spouse's background and values can forestall future problems.



2. We have discussed our financial goals. o T  o F

Setting your goals and priorities (More schooling? Travel? A home purchase? Children?) will decide your lifestyle now and in the future.


3. My spouse and I are well versed in personal finance.
o T  o F

Most of us have no formal training in personal finance. Working together to learn more will build confidence in your shared decisions. Meeting with a professional advisor can be a good first step in creating your life plan.


4. My spouse and I have discussed a plan to structure our finances.  o T  o F

Pool all your resources? Establish a joint checking account? Divide responsibilities? There's no right or wrong answer; the key is developing a plan that works for you.



5. We have planned for the impact that marriage will have on our taxes. o T  o F

It's very possible that you and your spouse together will pay more in taxes than you did as singles. Check with a CPA or tax professional to determine the extent of these changes.
 

6. We have decided how to divide up the money management tasks. o T  o F

Who will balance the checkbook, track expenses, pay the bills and monitor your investments?

7. We understand the importance of establishing a realistic budget. o T  o F

Without a plan for saving and spending, you tend to live and spend day-to-day. An agreed-upon budget will help you avoid misunderstandings about how you spend your money.

8. I know my future spouse's investment personality and risk tolerance. o T  o F
What's your comfort zone for your long-term investments? Will a dip in your retirement account keep you awake at night? How does your spouse feel about that?

9. I know how much debt my spouse is bringing into our marriage. o T o F

Developing a clear idea of the debts that each brings to a marriage and how it will be repaid is the first step in shared financial planning.

10. We have made a commitment to discuss money regularly. o T  o F

Differences are natural and inevitable. Talking them through honestly before they become a point of contention is the key to a lifetime of financial compatibility.

SCORING

If you answered "true" to eight or more statements, you and your spouse are on your way to a stable financial future.

If you answered "true" to between five and seven of the above statements, you and your spouse need to devote more time to planning your financial future together. With a little luck, you can achieve financial compatibility.

If you answered "true" to fewer than five questions, don't call off the wedding yet. Instead, make a sincere commitment to discuss these issues and consider meeting with an experienced financial planner who can help you start your marriage on firm financial footing.