Clear communication around money is one of the biggest challenges couples face when they get married. Whether it is dealing with differences in spending priorities, budgeting practices, or relationship to money, it can be difficult getting on (and staying on) the same page. Money is one of the leading causes of divorce in America, with financial problems contributing to somewhere between 20% and 40% of all divorces.

When it comes to estate planning, having open conversations and addressing concerns around your finances is critical to making sure your plan works how and when you need it to.

The immediate issue for finances and estate planning is funding your trust. You must make sure all your assets are titled appropriately to ensure that your trust has authority over your estate. It is all too common to see families who create detailed documents specifying exactly how they want their estate to be distributed only to discover that not a single account or property has been put into the name of the trust. When this happens, families are forced to go through a lengthy court process that does not guarantee their initial wishes will be carried out.

Second, if only one spouse handles the finances or your finances are handled separately, there can be serious issues in the event of incapacity. If the individual who manages the money suddenly becomes unable to think or speak clearly, the other partner can deal with unnecessary stress and hardship. It can result in payments being missed, money being mismanaged, and extreme financial difficulties.

The best way to mitigate these issues is to address the conversation with your spouse in full before there are issues. To get started, here is a list of twelve basic questions for you to consider ensuring that both of you are capable of handling your finances.

  1. Are the bills sent electronically or mailed? How do you pay them, and from which account?
  2. Do you have any automatic money transfers set up?
  3. Where do we keep track of our monthly and yearly budget?
  4. Where are the checking accounts held?
  5. Where are the savings accounts held?
  6. Where are the brokerage accounts held?
  7. Where are our retirement accounts held?
  8. What are the logins, passwords, and account numbers?
  9. Where are the health insurance cards kept?
  10. Is there any life insurance I don’t know about?
  11. Who are our trusted advisors (estate planning attorney, primary care physician, broker, insurance agent, and other trusted advisors) and where do we keep their contact information?
  12. Where do we keep all our important documents (i.e. social security cards, birth and marriage certificates, trust documents, etc.)?

In an effort to assist you in this journey, our office regularly hosts conversations around money. These events are engineered to provide an introduction to scientific investing principles and open conversations in your family about your relationship to money. For more details, and to register for these virtual events, contact our office.