From joint loans to inheritance: 6 important conversations every couple should have before tying the knot

Before marriage, couples should discuss assets, debts, property ownership, insurance beneficiaries, inheritance, and what would happen if one partner dies.

Popping the question is a highly anticipated moment, and so is the time spent as fiancés, planning the wedding, deciding on outfits, the guest list, and the venue. But it should not entirely be a moment of emotional surge, as you need to look at it logically too. Marriage is a big milestone, and many things are bound to change. Some conversations are avoided so as not to spoil the mood or have unpleasant tiffs. But some matters, such as legal or financial issues, need to be discussed beforehand, so both partners are well aware of where they stand before the marriage and what they are looking forward.

What all legal topics should couples be addressing before marriage? We asked Advocate Preeti Singh, Founder, PS Law Advocates & Solicitors. She said, “There are some conversations that couples postpone precisely because their marriage is going well. Money, property, inheritance, and even what happens if the marriage ends rarely make it to the dinner table. But when life changes, these are often the first questions that need clear answers.”

Why should couples discuss their legal and financial arrangements?

Any financial or household arrangement, as per the advocate, does not create problems, but things may change when circumstances change.

“A husband may manage all the investments while his wife manages the household. A flat may be registered in one spouse's name even though both contribute to the EMI. An insurance policy may still carry the nominee chosen years before their children were born. They may have a joint account, separate investments, and loans taken independently, without ever discussing what all of this means if their circumstances change,” she added, highlighting scenarios where responsibilities and assets are divided, but both partners may not fully understand what may happen if circumstances change.

In simple words, what happens if one partner dies, falls sick or stops earning, or the couple separates? These are difficult matters to address right at the start of a beautiful chapter. Assumptions would only cause more instability. The advocate reiterated that none of it is necessarily a problem while the marriage is functioning smoothly, but when circumstances change, the entire dynamic is thrown into uncertainty. This is why you need to discuss these matters early.

6 conversations to have before marriage

Some conversations may be difficult but they are necessary. (Unsplash)

Here are some of the conversations you should have with your spouse, as per the advocate:

1. Understand what you own and owe

• Discuss both spouses' income, investments, insurance policies, loans, business liabilities, and financial guarantees.
• Ensure both partners know how the family's finances are organised and where important documents are kept.
• Financial transparency does not mean giving up on financial independence.

2. Plan for the loss of one income

• Discuss how you would manage EMIs, household bills, and children's expenses if one spouse stops earning.
• Check how much emergency money is available.
• Consider how a career break for childcare or other family responsibilities would affect a spouse's income and financial independence.

3. Discuss financial responsibilities in case of separation

• Most important conversation.
• Identify individually owned assets, jointly purchased property, outstanding loans, and shared financial commitments.
• Discuss how children's education and living expenses would be managed.
• Do not assume that everything will automatically be divided equally. Property rights, maintenance, ownership, contributions, liabilities, and the interests of children can involve different legal considerations.
• Neither paying the entire EMI nor contributing unpaid care should be assumed to settle the question of property ownership.

4. Discuss who will inherit the assets

• Do not assume that everything will be automatically going to the surviving spouse.
• Inheritance depends on the applicable succession law, and other legal heirs may also have rights.
• Consider making a Will to record your wishes within the framework permitted by law and reduce uncertainty.

5. Review nominations

• Check nominations listed on insurance policies, bank accounts and investments, especially after major family changes.
• Naming someone as a nominee does not always mean they are the final owner of the asset; position depends on the asset and the governing law.
• Consider nominations alongside a broader succession plan rather than treating them as a substitute for a Will.

6. Prepare for illness or incapacity

• Ensure both spouses can locate important documents and understand the family's accounts and insurance and ongoing financial commitments.
• Do not assume that marriage automatically allows either spouse unrestricted authority over the other's financial or medical affairs.
• Depending on the circumstances, arrangements such as a properly executed power of attorney may become important for financial affairs.

In the end, the advocate reminded that these legal questions are to remove assumptions. She said, “Couples do not need to turn their marriage into a contract negotiation. But they should know what they have built, whose name things are in, what they owe, what happens to the children financially, who will inherit their assets, and what happens if one of them can no longer make decisions.”

And even when you are newly married, if you did not have these conversations before, you can have them when neither spouse is thinking about separating. The best time to make a Will is before one is needed.

Note to readers: This article is for informational purposes only and not a substitute for professional advice.