Rich Girl Roundtable: Money, Marriage, & Risks of Combined (and Separate) Finances (with a CFP!)
Oct 9, 2023
auto_awesome
Bill Nelson, CFP and Certified Financial Therapist discusses whether to combine finances in a marriage, importance of healthy financial practices, avoiding financial secrecy, and benefits and drawbacks of combined and separate finances in relationships.
Open communication and understanding are crucial when it comes to managing finances in a relationship, as it allows couples to create a strong foundation for financial success.
Prenuptial agreements can provide clarity and protection of assets, facilitating important discussions about financial expectations, responsibilities, and potential disruptions to income in a marriage.
Deep dives
Combining Finances vs. Keeping Them Separate
The podcast episode dives into the age-old question of whether it is better to combine finances as a couple or keep them separate. The guest, Bill Nelson, a certified financial planner and therapist, discusses the importance of having open conversations about money and the underlying beliefs and attitudes that drive financial decisions in a relationship. While combining finances can lead to happier relationships and better financial outcomes, he acknowledges that it may not work for everyone. Some couples may choose a hybrid approach, combining certain aspects while keeping others separate. It is essential to address concerns and establish clear goals and boundaries when it comes to finances in order to build a strong financial foundation for the relationship.
The Role of Prenuptial Agreements
The podcast also touches upon the significance of prenuptial agreements in mitigating financial risks in a marriage. Having a prenup can provide clarity and protect each individual's assets, particularly in cases of divorce or discrepancies in earning potential. While prenuptial agreements may not be for everyone, they allow couples to have crucial discussions about financial expectations, responsibilities, and potential disruptions to income. In addition, the episode emphasizes the importance of estate planning and considering the impact of financial decisions in the long run, taking into account factors like children from previous marriages or future financial challenges.
Communication and Understanding
The episode highlights the significance of open communication and understanding between partners when it comes to money. It stresses the need to discuss financial goals, attitudes, and past experiences openly and honestly. By understanding each other's perspectives and working towards a shared financial vision, couples can create a strong foundation for financial success. The conversation explores the complexities of managing finances in a partnership and the potential power dynamics that may arise. It's important to navigate these conversations together, seeking professional help such as financial therapy or counseling if needed.
Considering Different Life Phases
The episode highlights the importance of considering different life phases in financial planning. It encourages couples to discuss their financial expectations and aspirations for the future, such as retirement, starting a family, or career changes. It cautions against solely focusing on present circumstances and urges couples to think about their long-term goals and how their financial decisions can align with those goals. It emphasizes the need for flexibility and adaptability, as life events and circumstances may change, necessitating adjustments in financial plans.
Should you combine all your finances upon marriage? Is there a case for keeping them apart? We brought in the expert, CFP and Certified Financial Therapist Bill Nelson (https://pacesetterplanning.com/), to share what he most commonly sees and why you might be better off combining.
Welcome back to #RichGirlRoundup, Money with Katie's weekly segment where Katie and MWK's Executive Producer Henah answer your burning money questions. Each month, we'll put out a call for questions on her Instagram (@moneywithkatie). New episodes every week.
