Money and marriage: Building a financial future together

Step 1: Share your philosophies on marriage and money

Before you look into investment strategies for married couples, talk about how you save, spend, and invest. You'll get a better idea of each other's views on money, including investing styles and risk tolerances. Some questions to ask each other prior to combining finances in marriage could be:

• Do you prefer bold investments or would you rather play it safe?
• Are you a budgeter or a spender?
• Do you want to live modestly and save aggressively, or do you favor the finer things in life?
• Do you have any retirement savings, investment accounts, mortgages, or other debts?
• What are your daily or monthly expenses?
• Do you want to keep your finances separate?
• What purchases warrant notifying the other?

You and your partner might have different views on money and investing, and that's perfectly fine. You might be more open to taking risks for the chance of bigger rewards, while your partner might prefer a more cautious, steady approach. These differences can work well together, as long as you're open and honest with each other about your financial goals and how you plan to achieve them.

If you're unsure about how much risk you're comfortable with and what that means for your investments, we have financial advisors and resources for DIY investors, so you can start saving smartly today.

Step 2: Get organized with big-picture financial goals

Start thinking about the big picture and your shared goals. For some, retirement is a distant goal that can take a backseat to saving for a house, seeing the world, starting a business, or having children. But if you plan to retire at age 65, you may have to start saving sooner or setting aside more money each year to reach your goal on time.

Maybe you have student loans and credit card debt you'd like to pay off, but if your partner is planning a vacation to celebrate your birthday, your respective goals could conflict. Whatever your big-picture financial goals, it's important to align with your partner on these major milestones. Some other topics you'll want to discuss include establishing an emergency fund, paying down debt, and coordinating how to fund your long-term goals.

After you agree on which milestones are most important, create a timeline for achieving those goals. Like your money philosophy, you should be completely open and honest about your big-picture goals to ensure you and your partner work in sync toward your shared aspirations. Use our calculator to see how much income you'll have in retirement.

Step 3: Consider combining finances after marriage

When it comes to combining finances after marriage, there's no one-size-fits-all solution. For those who'd like to combine forces, you'll want to know about each other's debts, spending habits, and financial goals. When you combine finances, your partner's debt becomes your debt, and vice versa. In addition, your savings and spending will also become one.

While it can be a difficult conversation, some couples create a prenuptial agreement (prenup) before marriage to ensure they're both taken care of if the relationship ends. Prenups can cover various financial matters like how you handle bill payments or how you'd divide assets if the relationship ends. Consulting with a lawyer can help ensure that both partners are protected and that any tax implications are considered.

Step 4: Review your taxes and insurance policies

Some married couples agree to file taxes together as "married filing jointly." This means you'll report your combined income and deductions on one tax return. You can do this even if one of you didn't earn any income or have any deductions.

If you plan to file jointly, changing your marital status can affect your taxes, including how much tax you owe, credits you can claim, your refund amount, and more. It can also influence how much you can contribute to retirement plans and other tax-advantaged savings accounts, like health savings accounts (HSAs). Consult a tax professional to get a better idea of how you and your partner would be affected.

When it comes to insurance, be sure to review or update your current policies. Sufficient coverage can help protect your financial security in difficult situations. Certain health, life, or disability insurance coverages may be a better fit for your situation.