Consider Your Financial Intimacy Before You Tie the Knot

by Romano Brothers & Co.

Financial intimacy is right up there with physical or emotional intimacy according to Joseph R. V. Romano, President, Romano Brothers & Co., a 40-year-old independent Evanston investment firm. While Romano is hesitant to call himself a relationship expert, he notes that many divorced couples rank "financial issues" among the top reasons for their failed marriage. The following are tips that Romano offers to make life, beyond your wedding day, a success.

Know Your Level of Debt

Will you pay off or reduce your debt before marriage? Will you work together to perhaps consolidate at a lower rate? This is also helpful in understanding the spending habits of your spouse.

Discuss Registration of Assets

How will your assets be titled once married, in joint tenancy or separate accounts? While joint tenancy is the most common, confusion often arises with assets brought into the relationship.

Budget

If you select separate checking accounts, how will the household expenses be split? Options are to split expenses 50/50 per account or one spouse takes burdens like rent and food, while the other spouse takes cars expenses and entertainment. If you select a "joint" method, determine how to budget and balance each spouses' desire for personal expenditures.

Discuss Lifestyle Objectives

Assess your financial situation to determine how it will affect your lifestyle. For example, when do you want kids and is it financially feasible? How will you fund these expenses and save for college? Where might you cut back, if necessary? Can you support a one-income family?

Discuss Savings

If one of you is better at saving and one at spending, how will you balance these? Can you agree on a level of savings for retirement, college, and children and still maintain a lifestyle suitable for you and your spouse?

Consider a Pre-nup

This is more common for those choosing marriage later in life, business owners, remarrying divorcees and remarrying older couples with children. Also, this may be suitable for a situation in which one spouse has assets or concerns due to inheritance issues.

Founded in 1962, Romano Brothers & Co. is a self-clearing firm with over a half billion assets under management. The firm serves individuals, corporations, foundations and trusts with investments in common stocks, tax-exempt bonds, government securities, corporate bonds, and mutual funds.

Visit http://www.romanobrothers.org/index.html to learn more.