Marriage is a big step in anyone's life. It is a major milestone as two people join hands and begin a new chapter together. Practical matters such as finances are equally important. Discussing money at the beginning may feel uncomfortable, but having these conversations early can help prevent misunderstandings and conflicts later. A legal expert weighed in on this, sharing conversations couples should initiate in order to prevent relationship problems later in marriage. ALSO READ: Tired of saying yes to everything? Psychologist suggests 5 tips to set boundaries in a relationship without guilt
Supreme Court lawyer Sana Raees Khan, founder of SRK Legal, weighed in on the matter, noting that marriage is also a financial partnership. She emphasised the importance of having money-related conversations early, as unclear expectations may otherwise become a source of conflict.
“Once couples begin sharing expenses, savings, investments or liabilities, unclear expectations around money can become a source of conflict. Financial transparency before combining finances can help couples make informed decisions and protect both partners’ interests,” she said.
For greater relationship satisfaction, it is better to address financial matters early on. Sana noted that having these conversations can help prevent conflicts during periods of financial difficulty.
She added,“The main thing to remember is it's not a sensitive topic to be left out. An honest money discussion before entering into a debt-sharing agreement may lead to a great deal of mutual satisfaction and understanding, and can better inform a couple of their responsibilities, rights and long-term obligations.”
Here are the following conversations couples should be having before tying the knot, as per the lawyer:
1. Income, expenses and financial responsibilities
- Important for both partners to be open and honest about their income, their usual costs, any current regular expenses, and how costs will be split within the household.
- Will help prevent speculative expectations and give insight into what further contribution they can make.
2. Loans and liabilities (existing loans)
- Credit card dues, education loans, personal loans, or other financial obligations should not remain undisclosed.
- Knowing about the liabilities is very important before availing of a joint loan or big purchase.
Here are the following conversations couples should be having before tying the knot, as per the lawyer:
1. Income, expenses and financial responsibilities
- Important for both partners to be open and honest about their income, their usual costs, any current regular expenses, and how costs will be split within the household.
- Will help prevent speculative expectations and give insight into what further contribution they can make.
2. Loans and liabilities (existing loans)
- Credit card dues, education loans, personal loans, or other financial obligations should not remain undisclosed.
- Knowing about the liabilities is very important before availing of a joint loan or big purchase.
3. Joint accounts and ownership
- Whether couples should use joint accounts, separate accounts or a mixture of joint and separate accounts should be decided amongst the couple.
- They should also learn about who an asset is attributed to and the rights of each co-owner of jointly purchased assets or investments.
4. Savings, investments and financial goals
- Partners should talk about having an emergency savings plan, planning for retirement, investments, and any future financial objectives or plans involving a home purchase or paying for future education costs.
- Financial goals can be more attainable when they're followed via a shared roadmap.
5. Nominees, wills and succession planning
- Financial planning should also consider what happens if things were to fall apart unexpectedly.
- People who are in a relationship should review nominations and consider estate planning, a will, and not take marriage as a substitute for this.
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