marriage http://www.wisebread.com/taxonomy/term/5206/all en-US Why You Should Stop Keeping Your Money Problems to Yourself http://www.wisebread.com/why-you-should-stop-keeping-your-money-problems-to-yourself <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/why-you-should-stop-keeping-your-money-problems-to-yourself" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/we_can_not_afford_it.jpg" alt="We Cannot Afford It" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's hard to talk about difficult money problems. But keeping it all to yourself makes it harder, and more costly, to get out of debt. Don't believe me? Here are some things you are missing out on by staying silent.</p> <h2>An honest marriage</h2> <p>Secret bank accounts are not just for Don Draper. In a 2017 poll by CreditCards.com, 5 percent of respondents confessed to financially cheating on their partner in the form of secret bank accounts and credit cards. When extrapolated to the entire U.S. adult population, that means 12 million people are hiding secret accounts.</p> <p>Obviously, getting caught in a financial lie by your romantic partner is going to breed general mistrust. And even if your spouse isn't technologically savvy enough to suss out your money dalliances, if you ever need to file joint taxes or pool your resources to secure a mortgage, all your secrets will be laid bare during a routine credit check or audit.</p> <p>A lack of transparency can thwart your relationship and your goals. Squabbles over money are the number one reason for divorce, and unfortunately, new romances rarely begin with a discussion on how to save for retirement. Many couples discover each other's debt only when it becomes an obstacle too large for one person to manage.</p> <p>Lying about your money problems prevents you from working as a team and efficiently leveraging shared assets. Couples who communicate regularly and honestly about money not only have a better shot at maintaining a happy union, they have a better chance at achieving financial goals because they are on the same page about things that can dramatically impact their lives &mdash; like saving for their kid's college fund or paying down a home loan. (See also: <a href="http://www.wisebread.com/5-painless-ways-to-manage-money-with-your-partner?ref=seealso" target="_blank">5 Painless Ways to Manage Money With Your Partner</a>)</p> <h2>A community of friends</h2> <p>If you keep your financial problems secret, you deprive yourself of moneymaking or money-saving opportunities your social network could provide. A lot of people get tremendous pleasure out of helping others. Let those people help you by giving them a problem to solve. For example, someone you might know may have the perfect job for you.</p> <p>If outing yourself to your friends and family as a poor person is too hard, reach out to like-minded strangers. The internet is full of websites, blogs, forums, and other communities that are great for sharing resources. More importantly, an active community can come up with solutions custom-tailored to your situation.</p> <h2>Mental health</h2> <p>There are numerous ongoing studies that show the link between poverty and mental illness. But if you have ever been poor, you don't need scientific proof that poverty degrades mental health or that money really can buy happiness. You know first hand that poverty leads to depression that, in turn, makes it harder to rally against poverty. It's a vicious cycle.</p> <p>Self-care groups like <a href="https://debtorsanonymous.org/about-da/" target="_blank">Debtors Anonymous</a> can help with managing the stress that comes with financial dysfunction. In addition to providing a safe place to emotionally vent, these groups also offer targeted programs for small business owners, people who have financial problems due to under-earning, or compulsive shoppers. (See also: <a href="http://www.wisebread.com/9-ways-money-does-buy-happiness?ref=seealso" target="_blank">9 Ways Money Does Buy Happiness</a>)</p> <h2>Debt reduction</h2> <p>Be proactive about calling your creditors. Your creditors already know all about your debt, so there is no downside to reaching out to them. Actual, feeling humans work at credit card companies, insurance agencies, banks, and even the IRS. Let those people help you find a path back to creditworthiness.</p> <p>Talking honestly with creditors lets them know the context of your financial problem and also your willingness to pay down your debt. Debt collectors are more likely to go soft on someone who they know is paying down debt from a self-inflicted disaster than they are on someone who won't answer the phone.</p> <p>Beyond peace of mind, letting bank fees and fines stack up just makes it that much harder to get out of debt. Even if you can't break your cycle of poverty immediately, often you can get a little relief just by calling and asking for help. Did you get dinged with a $35 overdraft charge? Call your bank. Most banks give a once-a-year opportunity to erase one bank charge. Screw up your tax paperwork? Call the IRS. If your money woes came from an honest filing mistake, IRS workers actually have a lot of leeway when it comes to reducing fines, sometimes back to a zero dollar amount. (See also: <a href="http://www.wisebread.com/5-day-debt-reduction-plan-pay-it-off?ref=seealso" target="_blank">5-Day Debt Reduction Plan: Pay It Off</a>)</p> <h2>An authentic life</h2> <p>Ask yourself: Are your problems with money really about the money? I have many friends, who, even though they make a much larger salary than I do, are never happy. They spend an inordinate amount of time fretting about how much less they have than our even richer friends. They also waste a ton of money purchasing the <em>trappings of wealth</em> rather than actually investing their money to build <em>actual wealth</em>.</p> <p>Personally, I am willing to admit that I get a little emotional lift when people compliment my too expensive, but so adorable shoes. Sadly, I never feel the same burst of satisfaction when my tax accountant compliments my 401(k). So, I know the tyranny of sameness, and that sick desire to match the (often imagined) wealth of the people around me. (See also: <a href="http://www.wisebread.com/4-money-lessons-you-can-learn-from-the-joneses?ref=seealso" target="_blank">4 Money Lessons You Can Learn From the Joneses</a>)</p> <p>Are you keeping yourself poor? Not just financially poor, but emotionally, intellectually, or even spiritually poor? Would an honest conversation about your finances actually destroy relationships with your friends and family? Would taking a pay cut to take a job that you love make you feel more stressed than keeping a higher paying job that you hate?</p> <p>Even if life has dealt you a bad hand, what do you gain from suffering in silence and isolation? Nothing, which can make your debt burden all the more difficult to bear.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fwhy-you-should-stop-keeping-your-money-problems-to-yourself&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FWhy%2520You%2520Should%2520Stop%2520Keeping%2520Your%2520Money%2520Problems%2520to%2520Yourself.jpg&amp;description=Why%20You%20Should%20Stop%20Keeping%20Your%20Money%20Problems%20to%20Yourself"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Why%20You%20Should%20Stop%20Keeping%20Your%20Money%20Problems%20to%20Yourself.jpg" alt="Why You Should Stop Keeping Your Money Problems to Yourself" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/max-wong">Max Wong</a> of <a href="http://www.wisebread.com/why-you-should-stop-keeping-your-money-problems-to-yourself">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-simple-ways-to-split-bills-with-your-spouse">3 Simple Ways to Split Bills With Your Spouse</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-average-people-should-consider-a-prenup">6 Reasons Average People Should Consider a Prenup</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-money-fights-married-couples-have-and-how-to-avoid-them">4 Money Fights Married Couples Have (And How to Avoid Them)</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-i-learned-about-money-after-getting-married">8 Things I Learned About Money After Getting Married</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance conversations hiding money keeping up with the joneses marriage mental health money problems spouses talking Thu, 05 Apr 2018 09:00:06 +0000 Max Wong 2125603 at http://www.wisebread.com 9 Surprising Ways Marriage Can Make You Richer http://www.wisebread.com/9-surprising-ways-marriage-can-make-you-richer <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-surprising-ways-marriage-can-make-you-richer" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/groom_and_bride_are_under_viel_together.jpg" alt="Groom and bride are under viel together" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Marriage can be a wonderful thing, and not just because of the potential for lifelong companionship. Tying the knot can be a great financial decision, too.</p> <p>When you get married, you'll be eligible for some key tax breaks, and there are a number of other advantages that will ultimately help you build wealth. Take a look at these examples of how marriage can make you richer.</p> <h2>1. There's a larger standard tax deduction</h2> <p>Under the 2018 tax law, every married couple filing jointly is eligible for a standard deduction of $24,000. That's nearly double from the previous law and exactly twice the standard deduction for single people. This standard deduction is more important than ever, as the new tax law does not allow for as much itemizing of deductions. (See also: <a href="http://www.wisebread.com/12-things-you-should-know-about-the-new-tax-law?ref=seealso" target="_blank">12 Things You Should Know About the New Tax Law</a>)</p> <h2>2. You may save on taxes if filing jointly</h2> <p>Much has been said about the so-called &quot;marriage penalty&quot; in which couples could face a higher tax rate if they file jointly. But in truth, this was not an issue for most people, and the new tax law makes it even less likely that married couples will be penalized.</p> <p>In fact, in most cases under the 2018 tax law, there won't be much difference between your taxes if you file separately or jointly. But it could be very advantageous for couples to file jointly if one spouse makes considerably more than the other.</p> <p>To illustrate this, let's say you earn $37,000 in taxable income. Under the 2018 tax law, you'd be in the 12 percent tax bracket and pay $4,440 in tax if filing separately. Now let's say your spouse earns $190,000 per year and pays $60,080, based on the 32 percent tax bracket, also filing separately. If you file jointly instead, you'd report a combined income of $227,000 and would be in the 24 percent tax bracket. You would pay $54,480 in tax, a savings of nearly $10,000.</p> <h2>3. You have more buying power</h2> <p>When you get married, you are pooling financial resources. If both of you have assets and income, then you have greater ability to make purchases. It means you may be more likely to afford a down payment on a home, and have more ability to handle the monthly mortgage. It means you may become more attractive to lenders, though it is worth noting that you will still each have separate credit scores.</p> <h2>4. You can contribute to an IRA even if you don't work</h2> <p>If you want to contribute to an individual retirement account (IRA), you must have earned income. But there are exceptions, most notably in the form of a spousal IRA. With a spousal IRA, each spouse can have their own IRA, as long as one of the spouses has earned income. For most people, the limit of contributions on each account is $5,500 annually, so the total contributions allowed for married couples doubles to $11,000. The only catch to a spousal IRA is that couples must file their taxes jointly. (See also: <a href="http://www.wisebread.com/4-ways-couples-are-shortchanging-their-retirement-savings?ref=seealso" target="_blank">4 Ways Couples Are Shortchanging Their Retirement Savings</a>)</p> <h2>5. You can receive Social Security spousal benefits</h2> <p>When you file for Social Security benefits, you can file for your own benefits or under your spouse's. Even if you did not earn any income during your life, you can receive benefits through your spouse. Usually, spousal benefits are up to half your spouse's normal Social Security benefit. You'll also be able to receive spousal benefits even after your spouse passes on.</p> <h2>6. You may spend less on health care</h2> <p>There is considerable evidence that being married can make you healthier. Married couples look out for one another. They keep each other on track regarding diet and exercise, and a spouse is often the first person to notice when you appear unwell.</p> <p>The Harvard Health blog reported in 2016 that married people tend to live longer, are less likely to be depressed, and have fewer strokes and heart attacks. The report also cites studies showing that married people have better immune systems. This potentially means that your health care expenses could be less than if you remained single.</p> <h2>7. You can get health insurance through your spouse</h2> <p>If one spouse has access to health insurance through his or her employer, they can add a spouse to their plan. This is very helpful when one spouse is not employed or is not offered health insurance through their job. In most cases, family plans offer savings over plans for individuals.</p> <h2>8. Auto insurance is cheaper</h2> <p>Generally speaking, auto insurance companies will charge less to married couples than single people. That's because they tend to see marriage as something a more mature person does. Of course, it helps if both drivers have good driving records; if your spouse has a worse driving record than you, you may not see any savings.</p> <p>An analysis from Carinsurance.com revealed that married couples can typically see savings of 10 to 15 percent in most states. It's worth noting that insurance companies will offer discounts for multiple cars, as well.</p> <h2>9. You can inherit assets from your spouse without a will</h2> <p>To be clear, no one is suggesting you should celebrate when your spouse passes away. But it's worth noting that when you are married, you are usually entitled to inherit their assets, even if you don't have a formal will drawn up. Note: Crafting a will is still a very good idea. (See also: <a href="http://www.wisebread.com/heres-what-happens-if-you-dont-leave-a-will?ref=seealso" target="_blank">Here's What Happens If You Don't Leave a Will</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-surprising-ways-marriage-can-make-you-richer&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Surprising%2520Ways%2520Marriage%2520Can%2520Make%2520You%2520Richer.jpg&amp;description=9%20Surprising%20Ways%20Marriage%20Can%20Make%20You%20Richer"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Surprising%20Ways%20Marriage%20Can%20Make%20You%20Richer.jpg" alt="9 Surprising Ways Marriage Can Make You Richer" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-surprising-ways-marriage-can-make-you-richer">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">How to Protect Yourself Financially During a Divorce or Separation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-you-should-ask-your-financial-adviser-at-your-annual-meeting">What You Should Ask Your Financial Adviser at Your Annual Meeting</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-common-medicare-myths-debunked">5 Common Medicare Myths, Debunked</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-kinds-of-insurance-every-retiree-should-consider">5 Kinds of Insurance Every Retiree Should Consider</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance advantages assets auto insurance health care health insurance inheritance marriage retirement social security spousal ira taxes Mon, 19 Mar 2018 09:00:06 +0000 Tim Lemke 2114664 at http://www.wisebread.com What You Need to Know About Divorce and Credit http://www.wisebread.com/what-you-need-to-know-about-divorce-and-credit <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-you-need-to-know-about-divorce-and-credit" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/divorce_decree_and_wooden_gavel.jpg" alt="Divorce decree and wooden gavel" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Breaking up a marriage isn't cheap. According to Bankrate, the average divorce costs $15,000, but a contentious divorce can run up to $100,000. Beyond the legal fees, former spouses also frequently must face new financial strains after ending a relationship. One spouse, for instance, might now have to rent an apartment or pay a new mortgage while also paying big dollars in child support or alimony.</p> <p>Divorce can be tough on your credit score, too. Just because you're divorcing doesn't mean that your former spouse can't still hurt your credit. If your ex doesn't pay a credit card bill on time, your credit score could tumble &mdash; by as much as 100 points &mdash; if that particular card is still in both of your names.</p> <p>Fortunately, it is possible to rebuild your credit score after a divorce causes a blow. Doing so requires the same basic financial habits that helped you build a solid score in the first place.</p> <h2>Divorce and your credit</h2> <p>When you divorce, you'll likely work with an attorney to divide the assets and debts that you and your spouse shared. This can be a complicated process, even for a professional. In the best case scenario, you and your ex will reach an agreement about who will pay which debts. If that doesn't work, the court may decide this for you.</p> <p>Once your divorce is finalized, the court will provide you with a divorce decree. This document is filled with information, including a list of who will pay what debts now that your marriage is over. Here's the problem, though: A divorce decree won't protect you should your ex not make payments on accounts that you and your former spouse jointly owned.</p> <p>Say you and your ex took out a credit card account together. Your divorce decree might state that your ex is responsible for paying down this debt. But if your ex stops paying on the card, and the card remains in your name, too, your credit score will take a hit. That's because your creditors still view the debt on this account as the responsibility of both your former spouse and you, no matter what your divorce decree says. Creditors don't &quot;care&quot; what your divorce decree says. They will only look at what's in your credit agreement.</p> <p>Missed payments on mortgage loans, auto loans, and other joint accounts can also wreck your credit score. (See also: <a href="http://www.wisebread.com/spouses-and-debt-whos-really-on-the-hook-for-those-bills?ref=seealso" target="_blank">Spouses and Debt: Who's Really on the Hook for Those Bills?</a>)</p> <h2>Get rid of joint accounts</h2> <p>One of the best ways to repair any damage to your credit score following a divorce is to eliminate any joint accounts you shared with your spouse. They should now be in your name, or your spouse's name, only. That way, if your former spouse misses a payment, it won't hurt your credit score.</p> <p>Doing this can be tricky. If you and your ex have a joint credit card account, your best bet is to pay down that account off as quickly as possible and close it. Closing a credit card account can inflict a minor blow to your credit score, but in the case of a divorce, closing a joint account is usually worth the hit.</p> <p>If you and your former spouse share an auto loan, you might be able to refinance into a new loan that is solely under the name of you or your spouse. The same holds true for a mortgage.</p> <p>Refinancing, though, isn't always possible. If the new loan is to be under your former spouse's name only, your lender can only count that person's income when refinancing. If your ex's income isn't high enough to qualify for a new loan, a refinance might be rejected.</p> <p>In this case, you might have to sell the car or home in both your names. You can use the funds from these sales to pay off any other joint loans, and eliminate the possibility that a missed payment by your ex will slow your efforts to rebuild your credit score. (See also: <a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation?ref=seealso" target="_blank">How to Protect Yourself Financially During a Divorce or Separation</a>)</p> <h2>Rebuilding after the damage</h2> <p>There are no quick fixes for a credit score that has taken a dive. The fixes that <em>are</em> available take time and discipline.</p> <p>First, once your divorce is final, make sure to pay all your monthly bills on time. If you're a few days late on a credit card payment, don't panic. Payments aren't counted as officially late and reported to the national credit bureaus until they are 30 days past due. If you've missed your payment by a week, send it in before you hit that 30-day mark.</p> <p>Secondly, immediately start paying down as much of your credit card debt as you can. The lower the debt on your credit cards, the more your credit score will rise.</p> <p>Be careful, too, how you manage your credit cards moving forward. Never charge more than you can afford to pay off in full every month. And once cards are paid off, keep the accounts open, even if you don't plan on using the card. Keeping your <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?ref=internal" target="_blank">credit utilization ratio</a> low (the amount of credit you are using out of your total available balance) will also be a huge help to you. Your credit score will be higher if you are using less of your available credit &mdash; say, under 30 percent &mdash; and you can achieve this sooner by leaving your paid-off credit accounts open.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fwhat-you-need-to-know-about-divorce-and-credit&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FWhat%2520You%2520Need%2520to%2520Know%2520About%2520Divorce%2520and%2520Credit.jpg&amp;description=What%20You%20Need%20to%20Know%20About%20Divorce%20and%20Credit"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/What%20You%20Need%20to%20Know%20About%20Divorce%20and%20Credit.jpg" alt="What You Need to Know About Divorce and Credit" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/what-you-need-to-know-about-divorce-and-credit">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/bad-credit-it-might-cost-you-your-marriage">Bad Credit? It Might Cost You Your Marriage</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-myths-about-divorce-and-money-debunked">4 Myths About Divorce and Money, Debunked</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">11 Secrets You Need to Tell Your Financial Adviser</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance credit score debt divorce ex spouse joint accounts marriage rebuilding credit refinancing Wed, 07 Mar 2018 09:00:09 +0000 Dan Rafter 2111738 at http://www.wisebread.com How to Build Financial Stability After Divorce http://www.wisebread.com/how-to-build-financial-stability-after-divorce <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-build-financial-stability-after-divorce" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/paper_family_near_a_broken_heart.jpg" alt="Paper family near a broken heart" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Financial instability is a reality for nearly three-quarters of this country's 25 million divorcees. A study by TD Ameritrade surveyed 2,000 participants to examine how they're coping financially after a divorce or death of a spouse. As it turns out, people facing the end of a marriage are struggling &mdash; 75 percent of divorced Americans feel less than secure financially, and half are worried about running out of money in retirement.</p> <p>The average cost of a contested divorce &mdash; which can range from $15,000 to $30,000 &mdash; also throws many divorcees' finances out of whack. And it doesn't end there. Additional costs such as separate household expenses, counseling for children, and taxes or fees to sell marital assets can quickly add to the financial burden. (See also: <a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation?ref=seealso" target="_blank">How to Protect Yourself Financially During a Divorce or Separation</a>)</p> <p>Healing after a divorce is no small feat, but digging yourself out financially is possible. You just need a strategic plan.</p> <h2>Assess your assets</h2> <p>There is no doubt that your standard of living will change after a divorce. It's important to realistically acknowledge what you can handle financially. It may be necessary to sell a family home and downsize to maintain a workable budget. While challenging, especially if there is an emotional attachment to the home, life after divorce presents a new reality that must be addressed head-on. (See also: <a href="http://www.wisebread.com/5-money-moves-to-make-the-moment-you-decide-to-get-divorced?ref=seealso" target="_blank">5 Money Moves to Make the Moment You Decide to Get Divorced</a>)</p> <h2>Seek professional advice</h2> <p>This is an essential step for anyone facing an unexpected change in their financial situation. Objective, third-party advice can help you avoid making knee-jerk or emotional decisions that have long-term negative consequences. A financial professional who specializes in assisting divorcees can help you deal with typical questions and decisions that people in your situation face.</p> <h2>Adjust your budget</h2> <p>A divorce will likely decrease the overall income you've been accustomed to enjoying. Once you've established a plan for the essential items like housing, it will be time to take a closer look at the luxuries you enjoyed as a married person.</p> <p>This also relates to expenses for your children. Often, parents try to maintain the same standard of living for their kids to minimize the impact of a divorce. Moving to a less expensive house, downgrading a luxury car, or making cutbacks to family travel plans can help you recover financially.</p> <h2>Evaluate career options</h2> <p>Depending on your age and/or situation at the time of the divorce, you may have been out of work or planning on retiring soon. In this case, you may need to adjust your career aspirations. Re-entering the job market, investing in additional education or training, or postponing retirement are all reasonable considerations to ensure long-term financial stability after a divorce.</p> <h2>Automate your savings</h2> <p>There are many things to handle during a divorce, and saving money may feel like a bottom-tier priority. But that couldn't be further from the truth. You need savings now more than ever. The TD Ameritrade study found that almost half of divorced couples are not saving or investing anything. That compares to 32 percent of their married peers. If you have a lot on your plate, it's understandable; but give yourself one less thing to worry about by automating your savings. Having money automatically withdrawn from your paycheck and put into a savings account or emergency fund can give you peace of mind without having to think about it. (See also: <a href="http://www.wisebread.com/5-ways-to-automate-your-finances?ref=seealso" target="_blank">5 Ways to Automate Your Finances</a>)</p> <p>Divorce is tough. It's important to give yourself time to grieve your previous lifestyle and adjust to your new normal. Making these moves can be a smart step to help you springboard into the rest of your life without worrying about money.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-to-build-financial-stability-after-divorce&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Build%2520Financial%2520Stability%2520After%2520Divorce.jpg&amp;description=How%20to%20Build%20Financial%20Stability%20After%20Divorce"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Build%20Financial%20Stability%20After%20Divorce.jpg" alt="How to Build Financial Stability After Divorce" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/toni-husbands">Toni Husbands</a> of <a href="http://www.wisebread.com/how-to-build-financial-stability-after-divorce">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-simple-ways-to-split-bills-with-your-spouse">3 Simple Ways to Split Bills With Your Spouse</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">How to Protect Yourself Financially During a Divorce or Separation</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-myths-about-divorce-and-money-debunked">4 Myths About Divorce and Money, Debunked</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle assets career divorce expenses financial stability marriage saving money spouse Tue, 20 Feb 2018 09:30:09 +0000 Toni Husbands 2104965 at http://www.wisebread.com 3 Reasons Taking a Loan For Your Wedding Is a Bad Idea http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/marriage_and_finances.jpg" alt="Marriage and finances" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Imagine standing at the altar on your wedding day. Staring deep into your beloved's eyes, suddenly, you are struck by the thought that this one &quot;priceless&quot; moment is costing you over $30,000. And that doesn't include the five-day, four-night honeymoon in Cancun. <em>What have you done?</em></p> <p>According to The Knot, the national average for the cost of a wedding in 2016 was a whopping $35,329. And since most couples don't have that kind of cash upfront, many turn to loans to finance all or some portion of it.</p> <p>Technically speaking, there's no such thing as a &quot;wedding loan.&quot; A wedding loan is just an unsecured personal loan where the interest rate is based on the creditworthiness of one or both potential spouses. But kicking your marriage off with debt is a recipe for unnecessary stress and hardship. It can set you back financially before you even gain any momentum in what should be a new, exciting chapter of life.</p> <p>If you are contemplating using a wedding loan to help you pay for your big day, here are three key things you should consider.</p> <h2>1. You squander your money's opportunity cost</h2> <p>Every dollar comes with an opportunity cost &mdash; meaning there are infinite ways that one dollar can be spent. Once you spend the dollar, you lose all of the other potential things you could have purchased with it.</p> <p>Taking out a loan for a wedding is financial double jeopardy. Not only do you lose the opportunity cost for each dollar you've spent, but you also limit what you could have strategically used your credit for &mdash; such as purchasing a home or starting a business.</p> <p>There are so many ways to spend money, and shelling out copious amounts of cash to pay for a one-day event is a bad investment. Starting your life together with a huge amount of unnecessary debt adds more stress to a naturally stressful endeavor. Marriage is tough. In lieu of investing in a single day that won't appreciate in value, take that money and invest in your life with your partner.</p> <h2>2. You drastically increase the cost of your wedding</h2> <p>We've already established that having an expensive wedding is a bad investment, but taking out a loan to pay for a wedding is asinine. Let's say you take out a $20,000 personal loan for your wedding at an annual percentage rate (APR) of 10 percent. And because you and your fiancé both have student loans, car payments, several thousand dollars in credit card debt, and are looking to purchase your first home, you opt for a 10-year repayment period.</p> <p>Your minimum monthly payment is going to be $264.30 per month for 10 years. During that time, you will pay over $11,000 in interest. Your $20,000 wedding just skyrocketed to $32,000. Think about that for a second. Ten years of your life and $32,000 spent paying for a five-hour event. That money could have been a down payment for a home.</p> <p>What's more, according to the U.S. Census Bureau, first marriages that end in divorce do so within an average of eight years. That means if happily-ever-after comes to an end before your loan is paid off, you'll be paying for your wedding and your divorce <em>simultaneously</em>. (See also: <a href="http://www.wisebread.com/how-to-save-big-on-everything-for-your-wedding?ref=seealso" target="_blank">How to Save Big on Everything for Your Wedding</a>)</p> <h2>3. Spending big leads to more big spending</h2> <p>Spending big on an extravagant wedding establishes spending expectations. This big spending attitude can quickly seep into all financial decisions and an attitude of entitlement can emerge &mdash; because you deserve &quot;the best,&quot; which is usually defined by people with extravagant tastes. Now the honeymoon has to be lavish with no expense spared. Your home has to be opulent and in the fanciest neighborhood. Your kids have to wear the trendiest clothes, attend the most prestigious private schools, and belong to all of the &quot;it&quot; clubs. The cycle can consume your marriage.</p> <p>If you and your spouse-to-be can find a way to be creative and have a wedding that is meaningful, intimate, and budget-friendly, you will establish a better foundation. You will be setting a tone of living within your means and valuing quality over size and quantity.</p> <p>The essence of marriage is appreciating the little things and making the daily grind adventurous. When you pressure yourself and your spouse to continuously &quot;go big,&quot; you add a mountain of undue stress &mdash; both emotionally and financially &mdash; on your marriage. (See also: <a href="http://www.wisebread.com/people-are-still-spending-too-much-on-their-weddings?ref=seealso" target="_blank">People Are Still Spending Too Much on Their Weddings</a>)</p> <h2>A $40 wedding story</h2> <p>I recently celebrated my 22nd wedding anniversary. As I look back and recall my wedding, a smile slowly creeps across my face. We spent $40 on the ceremony and had our reception at Applebee's. Our best friends were there and we had the time of our lives.</p> <p>Over these past 22 years, I've never looked back and wished we had done things differently. In fact, we have renewed our vows twice since then (we do it every 10 years) and each time it's been a quiet ceremony in our pastor's office. The only people who attend are the pastor and my husband and me. It's intimate, private, and special.</p> <p>I am not saying you should forgo a large wedding. You have found and are marrying the love of your life. That level of commitment should be honored. But before you pull out all the stops and plan the wedding of the century, pause and assess how you are spending that money. Do you really need to spend $2,000 on flowers? If something isn't important to you and your fiance, don't borrow money to pay for it.</p> <p>Marriage is a marathon, not a 100-yard dash. Try shifting your focus from having the perfect wedding day to building your life together. Chose to invest in <em>you</em>.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F3%2520Reasons%2520Taking%2520a%2520Loan%2520For%2520Your%2520Wedding%2520Is%2520a%2520Bad%2520Idea.jpg&amp;description=3%20Reasons%20Taking%20a%20Loan%20For%20Your%20Wedding%20Is%20a%20Bad%20Idea"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/3%20Reasons%20Taking%20a%20Loan%20For%20Your%20Wedding%20Is%20a%20Bad%20Idea.jpg" alt="3 Reasons Taking a Loan For Your Wedding Is a Bad Idea" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/denise-hill">Denise Hill</a> of <a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-i-learned-about-money-after-getting-married">8 Things I Learned About Money After Getting Married</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-simple-ways-to-split-bills-with-your-spouse">3 Simple Ways to Split Bills With Your Spouse</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-you-need-to-know-about-divorce-and-credit">What You Need to Know About Divorce and Credit</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-conversations-every-couple-should-have">5 Money Conversations Every Couple Should Have</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle couples debt divorce interest rates loans marriage Opportunity Cost spouses weddings Wed, 14 Feb 2018 09:01:05 +0000 Denise Hill 2098585 at http://www.wisebread.com 4 Money Fights Married Couples Have (And How to Avoid Them) http://www.wisebread.com/4-money-fights-married-couples-have-and-how-to-avoid-them <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-money-fights-married-couples-have-and-how-to-avoid-them" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/could_this_be_the_final_straw_for_our_relationship.jpg" alt="Could this be the final straw for our relationship?" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When a couple first gets married, while the newlywed glow is still bright enough for strangers to see, it can seem as if nothing can ever get in the way of true love.</p> <p>But if you fast forward a few years, many couples will find that money has a seriously unpleasant effect on that love. Whether you are shouting at each other over a credit card bill, or living in chilly silence because of one spouse's financial decision, you may wonder why your love for each other is not enough to smooth over the jagged edges of your money disagreements. (See also: <a href="http://www.wisebread.com/8-steps-to-a-blissful-matri-money?ref=seealso" target="_blank">8 Steps to a Blissful Matri-Money</a>)</p> <p>According to a 2014 poll by Money Magazine, money is the most common reason married couples fight, ahead of household chores, togetherness, sex, snoring, and what's for dinner. These financial fights often seem to follow similar patterns, no matter who the spouses are, how much they make, or where they live.</p> <p>That means it's possible for married couples to anticipate common money fights, and avoid them altogether. Here's what you need to know about four of the most frequent money arguments, and how you and your sweetheart can avoid them.</p> <h2>1. Disagreements over spending</h2> <p>It's a tale as old as time. One of you is a spender, and the other one is a natural born saver. When the spender comes home with brand-new gadgets and gizmos galore, the saver is likely to blow a gasket. What ensues is an argument about who is a buzzkill and who is irresponsible.</p> <h3>How to avoid this argument</h3> <p>Many individuals make the mistake of avoiding this argument by simply not telling their spouses about their spending. Money Magazine's poll found that a full 22 percent of spouses have spent money that their partner doesn't know about. But while keeping your spending secret might keep the peace for the moment, such secrecy causes much bigger problems down the road.</p> <p>Instead, couples should commit to having separate fun money funds. This is a great way for each of you to make purchases the other might see as unnecessary, without it becoming an issue.</p> <p>As long as you and your partner can agree on a budget amount for important-to-me purchases, this strategy will allow you to buy stuff that matters to you without having to fight about it with your spouse. (See also: <a href="http://www.wisebread.com/5-money-conversations-every-couple-should-have?ref=seealso" target="_blank">5 Money Conversations Every Couple Should Have</a>)</p> <h2>2. Power struggles over money</h2> <p>In many relationships, one partner will believe he or she has the last say on financial decisions. Often, this comes about because of who is the higher earner, although these types of power struggles can also be rooted in beliefs about who is better with money &mdash; either because of gender stereotypes or the couple's specific relationship history.</p> <p>Unfortunately, these sorts of power struggles can really undermine the love between a married couple. When one partner wants to be the ultimate financial authority in the relationship, his or her actions can negate the equality between spouses, which can foster resentment and anger.</p> <h3>How to avoid this argument</h3> <p>It's important for spouses to recognize they are both on the same team when it comes to their money. To do that, they need to start viewing all income as &quot;our money&quot; and all decisions as &quot;our decisions.&quot;</p> <p>If the power struggle stems from the fact that one spouse brings in more money, one way to view things more equally is to sit down together and make a list of what you each do for the overall health of the relationship.</p> <p>This is a peacekeeping tactic that many marriage counselors advise for dealing with housework squabbles, but it works just as well for dealing with money imbalances. Once the higher-earner sees that the other partner does all the grocery shopping or laundry or airport drop-offs, it can help to put the high income in perspective. The high-earner would be keeping less of their income if each of those nonfinancial contributions by the low-earner had to be contracted out.</p> <p>If power struggles are rooted in a belief that one person is better with money, consider what would happen if either one of you died. If only one spouse takes care of the marital coffers, the other one will be vulnerable in the event of widowhood. Thinking through these kinds of worst-case scenarios can help spouses recognize the importance of each partner having financial responsibility and buy-in on financial decisions. (See also: <a href="http://www.wisebread.com/the-7-worst-money-mistakes-married-people-make?ref=seealso" target="_blank">The 7 Worst Money Mistakes Married People Make</a>)</p> <h2>3. Reactions to risk</h2> <p>Opposites often attract, particularly when it comes to risk tolerance. Often, the risk-averse, better-safe-than-sorry type and the risk-loving adrenaline junkie fall for each other, because Mr. Safety grounds Ms. Risky while she helps him expand his horizons. Unfortunately, these love matches can cause friction when it comes to financial decisions.</p> <p>For instance, one spouse may want to invest their savings into the business she is trying to get off the ground, while her husband would prefer to keep that money safe in the bank in case the business fails to launch. Such a couple might find themselves arguing over whether or not he believes in her, and whether or not she cares about his financial anxiety.</p> <p>Even couples who are both on the same page when it comes to the relative importance of a steady paycheck can strongly disagree about how much risk they are willing to accept in their investments. If he wants to chase returns with every no-fail promise of a tin mine in Bolivia, while she is happier to leave it all in CDs, savings accounts, and maybe a bond or two, there will be some serious fights about the future of their money.</p> <h3>How to avoid this argument</h3> <p>The best way to calm the fears of a risk-averse spouse is to make sure there is an upper limit to the amount of money that will be &quot;risked.&quot; For instance, an entrepreneurial spouse might promise to invest no more than 20 to 25 percent of their savings into the new business, which will give some room for growth while also providing the cushion that the other spouse needs to keep from breathing into a paper bag.</p> <p>Similarly, having a plan of action for investments can help a couple navigate their differing risk tolerances. Such a plan could design asset allocation that will mitigate risk and encourage growth &mdash; and potentially leave a small percentage available for the more speculative investments that will please the risk-taker in the couple. (See also: <a href="http://www.wisebread.com/5-painless-ways-to-manage-money-with-your-partner?ref=seealso" target="_blank">5 Painless Ways to Manage Money With Your Partner</a>)</p> <h2>4. Disagreements over helping family</h2> <p>One of the toughest arguments between couples happens when a family member asks for money. Whether it's a one-time request because of a truly difficult situation, or it's a family member who regularly wants to borrow money from you, this can cause major stress for a couple.</p> <p>Often, these types of fights go further than just disagreements about the money &mdash; they can become arguments about each other's families and each spouse's expectations of dealing with them. Many a spouse has spent a few nights on the couch because of a loan to a family member.</p> <h3>How to avoid this argument</h3> <p>The best way to avoid this kind of disagreement is to talk about it ahead of time. After you have been asked for money or have already given money to a family member is a bad time to hash out how you each feel about family loans. In particular, the issues you need to agree on are these:</p> <ul> <li> <p>Can you consider any money you give to family in need as a gift rather than a loan?</p> </li> <li> <p>If it has to be a loan, can you agree to have a legal loan document written up to make sure you are reimbursed?</p> </li> <li> <p>What is the maximum amount of money you are willing to give or loan to family in an emergency?</p> </li> <li> <p>Is there a maximum number of times you are willing to help the same family member?</p> </li> <li> <p>Are there nonfinancial ways you can offer to help if giving or loaning money is not in the cards?</p> </li> </ul> <p>Getting on the same page on these issues before a relative asks for money can help ensure that your bond with your spouse stays strong, no matter how often your shiftless cousin Lenny asks for a couple hundred dollars. (See also: <a href="http://www.wisebread.com/the-16-cardinal-rules-of-loaning-money-to-friends-and-family?ref=seealso" target="_blank">The 16 Cardinal Rules of Loaning Money to Friends and Family</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-money-fights-married-couples-have-and-how-to-avoid-them&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Money%2520Fights%2520Married%2520Couples%2520Have%2520%2528And%2520How%2520to%2520Avoid%2520Them%2529.jpg&amp;description=4%20Money%20Fights%20Married%20Couples%20Have%20(And%20How%20to%20Avoid%20Them)"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Money%20Fights%20Married%20Couples%20Have%20%28And%20How%20to%20Avoid%20Them%29.jpg" alt="4 Money Fights Married Couples Have (And How to Avoid Them)" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/4-money-fights-married-couples-have-and-how-to-avoid-them">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-i-learned-about-money-after-getting-married">8 Things I Learned About Money After Getting Married</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-put-your-spouse-on-a-budget-without-ruining-your-marriage">How to Put Your Spouse on a Budget Without Ruining Your Marriage</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-average-people-should-consider-a-prenup">6 Reasons Average People Should Consider a Prenup</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-simple-ways-to-split-bills-with-your-spouse">3 Simple Ways to Split Bills With Your Spouse</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family couples fights income disparity loaning money marriage money management power struggles spending spouses Tue, 13 Feb 2018 09:30:08 +0000 Emily Guy Birken 2103142 at http://www.wisebread.com 6 Times You Need to Update Your Will http://www.wisebread.com/6-times-you-need-to-update-your-will <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-times-you-need-to-update-your-will" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mother_and_father_at_home_with_newborn_baby.jpg" alt="Mother And Father At Home With Newborn Baby" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you have a will, you're already one step ahead of most people. According to a recent survey by Caring.com, 60 percent of U.S. adults don't have a will or a living trust.</p> <p>But simply creating a will isn't enough; you must also update it every time you reach a major life milestone. After all, your assets and beneficiaries can change several times long before you reach old age. If you were to pass away before those changes are reflected in a will, your assets may not be distributed to your heirs in the way you had intended. (See also: <a href="http://www.wisebread.com/what-you-need-to-know-about-writing-a-will?ref=seealso" target="_blank">What You Need to Know About Writing a Will</a>)</p> <p>If you've recently gone through one of these big life changes, it's time to sit down and update your estate plan.</p> <h2>1. Marriage</h2> <p>A will that designates what goes to your spouse will make things easier on them when you die. Joint property ownership is automatically turned into complete ownership by the surviving spouse after one spouse dies, and that can't be changed by a will. However, the surviving spouse will need a will to direct what to do with the house after <em>they</em> die.</p> <p>Also, some things may not automatically go to your spouse as a beneficiary if you haven't updated your will. For instance, say you receive an unexpected inheritance just before you die, such as the house of a long-lost relative. Is that joint property with your spouse? Not if it isn't listed in your will. Such assets could go to probate, which is why it's better to have an updated will.</p> <p>What if you and your spouse both die at the same time and neither of you have a will? Other trusts such as life insurance policies and retirement plans will have named beneficiaries. The home will automatically go to those people without requiring a will. But everything else will end up in probate court if there are no wills. (See also: <a href="http://www.wisebread.com/dont-make-these-5-common-mistakes-when-writing-a-will?ref=seealso" target="_blank">Don't Make These 5 Common Mistakes When Writing a Will</a>)</p> <h2>2. Divorce</h2> <p>A marriage adds a person to your life who should be added to a will; in a divorce, you may want to remove that person from your will. Do you want to leave your grandmother's jewelry to your ex-wife? Many people would say no.</p> <p>You may also want to update your will after a change in relationship with any other member of your family. Maybe the executor of your will who you named years ago is no longer of sound mind and capable of doing such duties. Or maybe someone you've left a large asset to has died. These are all reasons to update a will.</p> <h2>3. Children</h2> <p>When a child is born, it creates a potential new heir. A will can declare who you would want to be the guardian of your minor children upon your death. Otherwise, if you don't have a will and have young children, your surviving spouse may have to go to court to be appointed guardian of the children's property, according to Sherman Silverstein, a law firm in New Jersey.</p> <p>If a husband and wife die simultaneously without wills, the state may take over the care and support of minor children, and name relatives or someone else to take over their care, according to Silverstein. That's why it's important for both parents to have wills.</p> <p>If there are certain assets you want give to your children, you also need to spell this out in a will and make sure it's regularly updated. Without one, state law may divide your property between your surviving spouse and children against your wishes. If property is left to minor children, a guardian must be named to administer the property for them. It could be someone who is raising the children or someone else. (See also: <a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate?Ref=seealso" target="_blank">The Fair Way to Split Up Your Family's Estate</a>)</p> <h2>4. Death of an heir</h2> <p>If an heir dies before you do, anything left to them upon your passing could be in flux if your will isn't updated. Without any named heirs, property may pass to the state instead of to friends and relatives.</p> <p>If your spouse dies before you while any of your children are still minors, you'll want to update your will so that you can direct relatives and friends to select a guardian that they agree upon in case of your death. You also may want to direct the probate court to make the selection in the case that the relatives and friends you named can't agree on a guardian.</p> <h2>5. Real estate purchase or sale</h2> <p>Buying or selling a house is a major life event and can be a reason to celebrate. It can also be a reminder that it's time to update your will.</p> <p>As stated above, joint ownership of a home will pass on to your spouse if you die without a will. But other circumstances, such as your spouse also dying, can create the need for a will when you own property.</p> <p>If you're moving out of the state where you executed your will, check with an attorney in your new state to see if the will is still valid. State laws for wills can vary, and you shouldn't assume yours meets the requirements in your new state.</p> <h2>6. Major adjustment to investment portfolio</h2> <p>If your estate has had a substantial increase or decrease in value, then it's time to update your will. This can include your stocks increasing substantially in value, the sale of a major asset, the founding of a business, or anything else that has a big impact on your finances. You may want to change how much you give to one beneficiary over another, for example, or leave a new business to your daughter who is interested in it.</p> <p>Whatever life events come at you &mdash; and whenever &mdash; it's a good idea to review your will every year. A will is meant to disburse your assets according to your wishes. And those wishes may not be so easy to follow if your will has old information.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-times-you-need-to-update-your-will&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Times%2520You%2520Need%2520to%2520Update%2520Your%2520Will.png&amp;description=6%20Times%20You%20Need%20to%20Update%20Your%20Will"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Times%20You%20Need%20to%20Update%20Your%20Will.png" alt="6 Times You Need to Update Your Will" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/aaron-crowe">Aaron Crowe</a> of <a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-estate-planning-questions-everyone-should-ask">5 Estate Planning Questions Everyone Should Ask</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-what-happens-if-you-dont-leave-a-will">Here&#039;s What Happens If You Don&#039;t Leave a Will</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate">The Fair Way to Split Up Your Family&#039;s Estate</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-end-of-life-cost-savings-your-survivors-will-thank-you-for">9 End-of-Life Cost Savings Your Survivors Will Thank You For</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-financial-moves-to-make-when-a-loved-one-dies">12 Financial Moves to Make When a Loved One Dies</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance assets children death dependents divorce estate planning heirs homeownership last will and testament marriage update wills Thu, 07 Dec 2017 09:30:06 +0000 Aaron Crowe 2063303 at http://www.wisebread.com How Divorce Can Impact Your Social Security Payments http://www.wisebread.com/how-divorce-can-impact-your-social-security-payments <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-divorce-can-impact-your-social-security-payments" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/wire_wrapped_wedding_figurines.jpg" alt="Wire wrapped wedding figurines" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Divorce can have long-reaching financial consequences that can make it harder to ensure a stable retirement for yourself. The good news is that the Social Security Administration continues to acknowledge your relationship with your former spouse, even if you have striven to forget about it. Divorced partners may potentially collect spousal benefits based on the work records of their ex-spouses. This can be a boon for retiring divorcées &mdash; especially those who earned less than their spouses.</p> <p>Here's what you need to know about how your benefits might be affected by a former marriage.</p> <h2>Social Security's rules for spousal benefits for divorced couples</h2> <p>Not every divorced beneficiary is eligible for spousal benefits based upon their ex-spouse's work record. The Social Security Administration has several rules in place that you must meet in order to be eligible.</p> <h3>Rule 1</h3> <p>The marriage must have lasted for at least 10 years. This is bad news for Kris Humphries (whose marriage to Kim Kardashian famously lasted only 72 days), but it does ensure that any long-term marriages will offer a modicum of financial protection to each spouse.</p> <h3>Rule 2</h3> <p>To collect spousal benefits based on your ex's work record, you have to remain single post-divorce. However, if you do end up remarrying and your subsequent marriage ends in death, divorce, or annulment, you might still be eligible for benefits based on your original ex-spouse's work record.</p> <h3>Rule 3</h3> <p>If you've remained single and your ex got remarried, the spousal benefits you collect will not affect the benefits that your ex and his or her new spouse are entitled to receive.</p> <h3>Rule 4</h3> <p>Even if your ex has not yet applied for benefits, you may collect spousal benefits based on his or her record. You just have to meet two requirements to collect these benefits:</p> <ol> <li> <p>Your ex-spouse must qualify for his or her own retirement benefits. That means he or she must have reached at least age 62 (the earliest age to collect benefits) and be eligible for benefits based on his or her own work record.</p> </li> <li> <p>You must have been divorced for at least two years before the date of your filing for spousal benefits.</p> </li> </ol> <h3>Rule 5</h3> <p>You may only collect divorced spousal benefits if you have reached age 62.</p> <h3>Rule 6</h3> <p>If you collect spousal benefits before reaching your full retirement age, you will receive the spousal benefit plus your own retirement benefit, minus a reduction amount. Both benefits will be reduced based on the number of months you have to go until your full retirement age.</p> <h2>Calculating spousal benefits</h2> <p>The spousal benefit can make a financial difference for divorcées who earned less than their exes. However, because of the way that spousal benefits are calculated, individuals who earned about the same amount as their spouses will see very little benefit &mdash; or possibly none at all. That's why it's important to understand exactly how spousal benefits are calculated.</p> <p>It all starts with a number that Social Security, in its infinite wisdom, refers to as the Primary Insurance Amount, or PIA. The PIA is the full amount of money to which you are entitled as of your full retirement age. Your PIA is calculated using the average amount of money you earned monthly during your 35 top earning years.</p> <p>Your spousal benefit is calculated using your PIA and your spouse's PIA, using the following formula:</p> <p style="margin-left: 40px;">50% of Spouse's PIA - Your PIA = Your Spousal Benefit</p> <p>For example, Charlotte and Ingram divorced several years ago. Charlotte was the breadwinner for most of their marriage, and her PIA is $1,800. Ingram's PIA is $850. Let's look at what they'd each potentially receive as spousal benefits:</p> <p style="margin-left: 40px;">50% of Charlotte's PIA - Ingram's PIA = Ingram's Spousal Benefit</p> <p style="margin-left: 40px;">(50% of $1,800) - $850 = $50</p> <p>Ingram's spousal benefit will be $50.</p> <p style="margin-left: 40px;">50% of Ingram's PIA - Charlotte's PIA = Charlotte's Spousal Benefit</p> <p style="margin-left: 40px;">(50% of $850) - $1,800 = -$1,375</p> <p>Charlotte's spousal benefit will be treated as $0.</p> <p>Since Charlotte earned so much more than her husband, she will not be eligible for spousal benefits based on his work record. (This is true whether they remain married or get divorced.)</p> <p>As for Ingram, $50 does not seem like much, but this spousal benefit will be added to his retirement benefit. This means he will have a monthly benefit of $900 (his PIA of $850 + his spousal benefit of $50), provided he waits until his full retirement age to take benefits.</p> <h2>The importance of timing</h2> <p>The longer you wait for Social Security benefits, the more you will receive &mdash; to the tune of nearly 8 percent per year between age 62 and age 70. This is also true for divorcées hoping to receive spousal benefits, although there is a point of diminishing returns when it comes to spousal benefits.</p> <p>Let's look at an example:</p> <p>Mina and Nicholas divorced after 25 years of marriage. Nicholas is eligible for a PIA of $2,400 as of his full retirement age, and Mina is eligible for a PIA of $1,000 at her full retirement age. Since Nicholas has a much higher PIA than Mina, he will not be eligible for spousal benefits. Mina's spousal benefits can be calculated as follows:</p> <p style="margin-left: 40px;">50% of Nicholas's PIA - Mina's PIA = Mina's Spousal Benefits</p> <p style="margin-left: 40px;">(50% of $2,400) - $1,000 = $200</p> <p>Mina's spousal benefit will be $200.</p> <p>However, when Mina chooses to take her benefits can affect just how much she will receive. Specifically, if she applies for her benefits before reaching her full retirement age, both her PIA and her spousal benefits will be reduced based on the number of months she has to go until her full retirement age.</p> <p>If she applies for her benefits after reaching her full retirement age, however, her PIA will be increased by what's known as delayed retirement credits. But those delayed retirement credits can nullify the spousal benefit, however, because she will receive either the PIA plus delayed retirement credits or the PIA plus spousal benefit &mdash; whichever one is greater.</p> <p>Let's say Mina's full retirement age is 67. Here are three of her timing options:</p> <h3>Mina's Option 1</h3> <p>She files for benefits at age 62, as soon as she is eligible for them. This means she'll be taking benefits 60 months before her full retirement age, which means her PIA will be reduced by 30 percent and her spousal benefit will be reduced by 32.5 percent. Mina's benefit will be calculated using the following formula:</p> <p style="margin-left: 40px;">(PIA - reduction amount) + (Spousal Benefit - reduction amount) = Total benefit before Full Retirement Age</p> <p style="margin-left: 40px;">(Mina's PIA - 30%) + (Mina's Spousal Benefit - 32.5%) = Mina's Benefit at 62</p> <p style="margin-left: 40px;">($1,000 - $300) + ($200 - $65) = $835</p> <p>Mina will receive a monthly benefit of $835 if she files at age 62.</p> <h3>Mina's Option 2</h3> <p>She waits to file for her benefits until she reaches her full retirement age. Mina will receive her PIA of $1,000, plus her spousal benefit of $200, for a total monthly benefit of $1,200.</p> <h3>Mina's Option 3</h3> <p>She waits to file for her benefits until she turns 70. Since her full retirement age is 67, waiting until age 70 will earn Mina an additional 124 percent in delayed retirement credits. Mina will receive her PIA of $1,000, plus her delayed retirement credit of $240, for a total monthly benefit of $1,240. Since her PIA plus delayed retirement credit is greater than her PIA plus spousal benefit (which would be $1,200), she will not receive her spousal benefit if she waits to file for benefits until age 70.</p> <h2>Social Security ever after</h2> <p>Understanding just how your Social Security benefits might be affected by your divorce is an important part of retirement planning. Make sure you know exactly what you are entitled to so you don't miss out on money that can help make your retirement more comfortable.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-divorce-can-impact-your-social-security-payments&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520Divorce%2520Can%2520Impact%2520Your%2520Social%2520Security%2520Payments.jpg&amp;description=How%20Divorce%20Can%20Impact%20Your%20Social%20Security%20Payments"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20Divorce%20Can%20Impact%20Your%20Social%20Security%20Payments.jpg" alt="How Divorce Can Impact Your Social Security Payments" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/how-divorce-can-impact-your-social-security-payments">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-ways-to-boost-your-social-security-payout-before-retirement">6 Smart Ways to Boost Your Social Security Payout Before Retirement</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-you-need-to-know-about-working-while-collecting-social-security">What You Need to Know About Working While Collecting Social Security</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-financial-penalties-every-retiree-should-avoid">3 Financial Penalties Every Retiree Should Avoid</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-startling-facts-that-will-make-you-want-to-invest">8 Startling Facts That Will Make You Want to Invest</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement calculations divorce marriage pia retirement benefits social security spousal benefits Wed, 06 Dec 2017 10:00:07 +0000 Emily Guy Birken 2066565 at http://www.wisebread.com 5 Money Conversations Couples Should Have Before Retirement http://www.wisebread.com/5-money-conversations-couples-should-have-before-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-money-conversations-couples-should-have-before-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/budgeting_works_better_when_we_do_it_together.jpg" alt="Budgeting works better when we do it together" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Retirement for you and your spouse is just a few years away. Maybe you're both eagerly awaiting the days when you no longer must commute to work, sit in long meetings, and turn in reports.</p> <p>But retirement does come with its own challenges, many of them financial. It's important for spouses to have the same expectations of what their retirement years will look like. And it's equally important for each spouse to understand where their income will be coming from and how much money there will be.</p> <p>Here are five key conversations that couples must have before retirement arrives.</p> <h2>1. What kind of retirement do you both want, and how expensive will it be?</h2> <p>There are many different ways to spend your retirement years. Maybe you want to travel the world. Maybe you'd prefer spending more time with your grandchildren. Your version of a dream retirement might consist of days on the golf course or fishing on the lake.</p> <p>But what if you have the travel bug, and your spouse would prefer to sit home and catch up on some reading? These are two radically different versions of retirement. And, when it comes to your retirement finances, one is far more expensive than the other.</p> <p>It's important for you to share your retirement expectations with your spouse before you actually leave the working world. If you both agree that plenty of travel is in your future, you'll need to work hard to make sure you'll have enough retirement dollars to fund these trips. If only one of you wants to spend time traveling or pursuing a more expensive hobby, you'll have to craft a compromise.</p> <h2>2. Where will the money come from, and how much will you have?</h2> <p>As retirement nears, couples must work together on a new household budget tailored to their new life after work. You won't be able to rely on that steady work income after retirement, and Social Security payments probably won't cover all your daily living needs. This makes writing a household budget &mdash; and agreeing to stick to it &mdash; more important.</p> <p>Your new budget should list all of your sources of monthly income and all of your expected monthly expenses, including mortgage payments if you still have them, car payments, utility bills, groceries, and entertainment. Once you've listed your income and expenses, including how much of your retirement savings you'll need to dip into each month to cover these expenses, you'll have a clearer picture of how much you can spend each month after leaving the working world. (See also: <a href="http://www.wisebread.com/6-ways-you-can-cut-costs-right-before-you-retire-0?ref=seealso" target="_blank">6 Ways You Can Cut Costs Right Before You Retire</a>)</p> <h2>3. Where will you live?</h2> <p>Housing expenses can be a challenge after retirement. It's important for couples to discuss where they'll live after leaving the working life behind. Do you want to stay in your current home for as long as possible? The financial ramifications of this will vary depending on whether you've paid off your mortgage or not. It might make more sense to sell your home and move into a smaller condo or apartment. Or maybe you're ready to move into a senior housing facility.</p> <p>Don't put off conversations about housing. This is one of the most important issues couples face after retirement. (See also: <a href="http://www.wisebread.com/retire-for-half-the-cost-in-these-5-countries?ref=seealso" target="_blank">Retire for Half the Cost in These 5 Countries</a>)</p> <h2>4. Will one of you take on a new job or career?</h2> <p>Retirement doesn't always mean that you or your spouse won't continue to work in some way. Some people take on part-time jobs to occupy their time and earn a bit of extra spending money. Others start the new careers that they've always desired. (See also: <a href="http://www.wisebread.com/6-great-retirement-jobs?ref=seealso" target="_blank">6 Great Retirement Jobs</a>)</p> <p>It's important for couples to discuss their plans for working after retirement. One spouse &mdash; or both &mdash; holding down a part-time job can make a significant difference in your income and budget after retirement, even if this income isn't essential to covering your daily living needs.</p> <h2>5. How will you handle unplanned expenses?</h2> <p>Unexpected expenses aren't unusual while you're working, with everything from burst water heaters to serious medical problems eating away at your savings. The same unexpected expenses can pop up when you're retired, too. When they do, how will you pay for them?</p> <p>Talk with your spouse about maintaining an emergency fund that can cover at least six months' worth of your daily living expenses after retirement. If you don't maintain this fund &mdash; which you should have had while you were working &mdash; one big unexpected expense could wreak havoc on your budget. (See also: <a href="http://www.wisebread.com/9-unexpected-expenses-for-retirees-and-how-to-manage-them?ref=seealso" target="_blank">9 Unexpected Expenses for Retirees &mdash; And How to Manage Them</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-money-conversations-couples-should-have-before-retirement&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Money%2520Conversations%2520Couples%2520Should%2520Have%2520Before%2520Retirement.jpg&amp;description=5%20Money%20Conversations%20Couples%20Should%20Have%20Before%20Retirement"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Money%20Conversations%20Couples%20Should%20Have%20Before%20Retirement.jpg" alt="5 Money Conversations Couples Should Have Before Retirement" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-money-conversations-couples-should-have-before-retirement">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-you-should-budget-your-social-security-checks">Here&#039;s How You Should Budget Your Social Security Checks</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-build-financial-stability-after-divorce">How to Build Financial Stability After Divorce</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-ways-couples-are-shortchanging-their-retirement-savings">4 Ways Couples Are Shortchanging Their Retirement Savings</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-saving-money-is-harder-today">Why Saving Money Is Harder Today</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-far-1-million-will-actually-go-in-retirement">Here&#039;s How Far $1 Million Will Actually Go in Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement career conversations couples emergency funds expenses housing income jobs marriage spouse Tue, 05 Sep 2017 09:00:06 +0000 Dan Rafter 2013258 at http://www.wisebread.com Bad Credit? It Might Cost You Your Marriage http://www.wisebread.com/bad-credit-it-might-cost-you-your-marriage <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/bad-credit-it-might-cost-you-your-marriage" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/wedding_costs.jpg" alt="Wedding costs" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>There's a lot to think about when choosing a partner: attraction, personality, and commonalities in interests, values, and life goals. Sense of humor is important, along with whether she's allergic to your cat or he's tolerant of your love for stinky cheeses.</p> <p>If you find a good match on all of those factors, are you set? Not entirely. Studies show that there's another factor you should consider: your potential mate's credit score.</p> <h2>The credit score connection</h2> <p>What's a credit score got to do with love? Quite a bit, actually. Well, maybe not love, per se, but credit scores have something to do with the longevity of a relationship. Lower credit scores are linked with higher rates of divorce or &quot;relationship dissolution,&quot; according to a 2015 study done by the Federal Reserve Board.</p> <p>The study looked at data from 12 million consumers to track correlation between credit score and relationship longevity. The results were telling: Researchers found that credit scores play a significant role in how long committed relationships last. If both partners have higher average credit scores at the beginning of the relationship, they are less likely to separate.</p> <p>A drop of 93 points in a partner's average credit score increased the chance that the relationship will end in the second year by a whopping 30 percent.</p> <p>If you thought money didn't matter, think again.</p> <h2>What about love, and stuff?</h2> <p>The big question is <em>why</em>. Why are lower credit scores related to increased chances of a relationship ending? There are several possibilities. More than likely, it's a combination of these factors:</p> <h2>Assumptions of character</h2> <p>The researchers posit that a low credit score may be linked to the lack of key relationship skills, such as trustworthiness. Credit scores, they point out, are used in many cases not just to show that someone is financially solvent, but that they are reliable and will honor their commitments.</p> <p>Of course, there are many complex factors involved in an individual's credit score. It's not fair to assume that because someone has a low credit score, that person is unreliable, lazy, or untrustworthy.</p> <p>But the perception that certain negative traits are present can be enough to close a lot of society's doors for an individual. A low credit score might mean you can't get a lease, can't get a loan, or can't buy a car. Those closed doors lead to the second significant factor: stress.</p> <h2>Ongoing financial stress</h2> <p>A low credit score may be due to unsecured and unpaid debt, often with high interest rates attached. Having debt at a high interest rate is enough, by itself, to cause financial stress. When you add in those closed doors, you get a mountain of financial pain.</p> <p>Imagine someone who has high-interest debt with a fairly high monthly payment. This person gets a great job, but needs reliable transportation to get to it. They can't get a loan to buy a car, and they don't have the cash to purchase one outright, so they have to rely on friends and family for rides. Maybe public transportation is available, but maybe it isn't. This person's ability to get to work depends on the willingness of other people to provide transportation.</p> <h2>It's not the credit score, but it is</h2> <p>Stress is stress, whether it's financial or caused by some other factor. When someone lives under continual financial stress, it affects the functioning of their brain and body. <a href="http://www.umm.edu/health/medical/reports/articles/stress" target="_blank">Chronic stress</a> is linked to higher blood pressure, lowered immune system, weight gain and obesity, depression and anxiety, short-term memory impairment, loss of concentration, and substance abuse.</p> <p>People with low credit scores are often functioning with chronic stress. They're simultaneously trying to overcome the limitations and assumptions caused by their low credit score. The relationship correlations make sense. Stress from any factor will affect a relationship; chronic stress can slowly dismantle the structure of a relationship.</p> <h2>Resentment in the relationship</h2> <p>Resentment and conflict can develop when one partner has to continually take on the brunt of the financial burden. For example, a couple decides to buy a home together; however, one partner's credit score would hurt the mortgage application. Instead of pursuing joint homeownership, the partner with better credit becomes the sole applicant for the home loan and thus, the sole responsible party. This sense of <a href="http://www.wisebread.com/why-couples-fight-over-money-and-what-to-do-about-it" target="_blank">financial inequality</a> can lead to ongoing resentment toward the person with lower credit.</p> <p>Resentment can run both ways. The partner with low credit may resent having to be &quot;helped.&quot; And the partner with better credit may use it to justify bad behavior in other areas of the relationship.</p> <h2>What can you do?</h2> <p>A credit score does not define the person you're with. And a credit score is not forever. There are ways to <a href="http://www.wisebread.com/5-tricks-to-consolidating-your-debt-and-saving-money" target="_blank">consolidate debt</a>. You can get <a href="http://www.wisebread.com/8-organizations-that-really-can-help-you-with-your-debt" target="_blank">free financial counseling</a>. Romantic partners with strong communication skills, and a plan for paying off debt and building financial security can tackle the challenges of low credit together, and win.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fbad-credit-it-might-cost-you-your-marriage&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FBad%2520Credit-%2520It%2520Might%2520Cost%2520You%2520Your%2520Marriage.jpg&amp;description=Bad%20Credit%3F%20It%20Might%20Cost%20You%20Your%20Marriage"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Bad%20Credit-%20It%20Might%20Cost%20You%20Your%20Marriage.jpg" alt="Bad Credit? It Might Cost You Your Marriage" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/annie-mueller">Annie Mueller</a> of <a href="http://www.wisebread.com/bad-credit-it-might-cost-you-your-marriage">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-you-need-to-know-about-divorce-and-credit">What You Need to Know About Divorce and Credit</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">How to Protect Yourself Financially During a Divorce or Separation</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-myths-about-divorce-and-money-debunked">4 Myths About Divorce and Money, Debunked</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance compatibility credit score debt divorce marriage money troubles relationships stress Thu, 27 Jul 2017 08:30:04 +0000 Annie Mueller 1988259 at http://www.wisebread.com 4 Myths About Divorce and Money, Debunked http://www.wisebread.com/4-myths-about-divorce-and-money-debunked <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-myths-about-divorce-and-money-debunked" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/money_trouble.jpg" alt="Money trouble" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Divorce happens. And when it does, it's expensive. Divorce proceedings cost an average $10,000 to $15,000, according to GOBankingRates. (See also: <a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation?ref=seealso" target="_blank">How to Protect Yourself Financially During a Divorce or Separation</a>)</p> <p>Unfortunately, many who are divorcing hold certain financial misconceptions about the process. Some might believe that spouses who commit adultery will pay more in a divorce. Others might believe that they won't be responsible for the debt on their spouse's credit card accounts.</p> <p>There are plenty of financial myths surrounding divorce. Here are four of the most important ones.</p> <h2>1. My spouse's adultery will help my case</h2> <p>You might think that you're entitled to more money in the divorce because your spouse was unfaithful. The truth is, adultery does not play a role in who gets more money or assets following a divorce.</p> <p>That's because states today offer what is known as a no-fault divorce. As the name suggests, in this type of divorce proceeding, separating spouses do not have to prove that the other party did anything wrong to cause the breakup of the marriage.</p> <p>Divorce isn't about punishing people for bad behavior; it's about finding a way to divide up money and assets between two people. Your spouse's infidelity does not mean you will automatically get the house or you will receive a greater amount of alimony.</p> <p>There is an exception, though: If your spouse blew a significant amount of money to pursue the affair &mdash; renting a secret apartment, spending on lavish trips &mdash; your divorce judge might require them to pay more.</p> <h2>2. I didn't work during my marriage, so I'll get alimony payments for life</h2> <p>If you didn't work during your marriage, you will probably receive alimony payments. But these payments might not be as permanent as you might think.</p> <p>Today, nonworking spouses usually receive their alimony payments, also known as spousal support, for a limited time. The goal is to provide the spouse with some financial support until that person can find a job or pay for an education. Don't expect an unending stream of financial support from your ex-spouse.</p> <h2>3. Money in my own bank account will be mine after the divorce</h2> <p>Don't think that just because you stashed money in a bank account in your name only that you won't lose some of these funds in your divorce.</p> <p>Your former spouse might be entitled to some of the money in this account. Whether that's the case depends on a host of factors, including how that money was earned, whether you inherited it, or whether you live in a community property state.</p> <p>That community property state part is important. There are nine of these states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska is an opt-in community property state. In these states, all assets acquired during a marriage are considered community property and owned by both spouses equally. In a divorce, all assets are split 50/50.</p> <p>In the rest of the states, assets in a divorce are to be divided equitably, but not always equally. So even if you've stowed money in a private bank account, your divorce judge might decide that you either owe your spouse half of that money or a portion of it, depending on the circumstances of your case.</p> <h2>4. I won't have to worry about the debt my spouse ran up on a credit card</h2> <p>This is a tricky one. Depending on where you live, you usually won't be responsible for the debts that your spouse ran up on a credit card that is in that spouse's name only.</p> <p>But if you live one of the community property states, you will be responsible for half of that debt, even if the credit card account was never in your name. There is an exception, though: You are only responsible for 50 percent of the debt your spouse ran up during your marriage. Any debt your spouse ran up on the credit card before your marriage is not your responsibility.</p> <p>If you don't live in a community property state, you are usually not responsible for the debt your spouse runs up on a credit card. However, there are some exceptions. If the debt your spouse ran up was to pay for your child's dental work, to repair your home's busted water heater, or to replace your residence's furnace &mdash; basically, to cover any essential family expense &mdash; you will then be responsible for half of that debt. (See also: <a href="http://www.wisebread.com/spouses-and-debt-whos-really-on-the-hook-for-those-bills?ref=seealso" target="_blank">Spouses and Debt: Who's Really on the Hook for Those Bills?</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-myths-about-divorce-and-money-debunked&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Myths%2520About%2520Divorce%2520and%2520Money%252C%2520Debunked.jpg&amp;description=4%20Myths%20About%20Divorce%20and%20Money%2C%20Debunked"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Myths%20About%20Divorce%20and%20Money%2C%20Debunked.jpg" alt="4 Myths About Divorce and Money, Debunked" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-myths-about-divorce-and-money-debunked">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">How to Protect Yourself Financially During a Divorce or Separation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-you-need-to-know-about-divorce-and-credit">What You Need to Know About Divorce and Credit</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-build-financial-stability-after-divorce">How to Build Financial Stability After Divorce</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance adultery alimony assets common law property debt divorce marriage myths separation support Tue, 11 Jul 2017 09:00:10 +0000 Dan Rafter 1977969 at http://www.wisebread.com How to Protect Yourself Financially During a Divorce or Separation http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-protect-yourself-financially-during-a-divorce-or-separation" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/a_broken_red_heart_over_two_us_hundred_dollar_bills.jpg" alt="A broken red heart over two US hundred dollar bills" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Marriage is not always &quot;till death do us part.&quot; Time, unforeseen events, individual decisions, and emotional disconnect can lead couples to make the hard decision to separate or divorce.</p> <p>Divorce proceedings cost an average $10,000 to $15,000, according to GOBankingRates. That's due largely to lawyers' fees. It's vital that individuals minimize additional financial fallout. The last thing you need is another financial blow due to negligence, malice, or misunderstanding.</p> <h2>1. Research your state's divorce and separation laws</h2> <p>Divorce and legal separation laws in the United States are decided on a state level. That means the first step to financial security is finding out when you stop being liable for debts incurred by your spouse.</p> <p>In Pennsylvania, for example, a debt and assets cut off date is known as the &quot;Date of Separation.&quot; That date is either considered the day the divorce complaint is filed or the day that the decision is made to separate (either moving out of the house or into a separate bedroom). In other states like New Jersey, liability for your spouse's debt doesn't stop until the divorce is actually finalized.</p> <p>Couples can also, depending on the state, opt for a legal separation. Legal separation is a lot like a divorce, but the couple remains married, which allows them to file taxes together and remain on their spouse's health insurance. It could be a solid stopgap if you're unsure if a divorce is the right answer.</p> <h2>2. Plan ahead</h2> <p>Individuals who are separated or divorced might want to begin to track and document all potential assets. That means taking pictures of evidence, hunting down legal documents, and familiarizing yourself with your joint and individual financial portfolios.</p> <p>Spouses often utilize temporary separations as a means to collect evidence before officially filing for divorce. It might be best to assume your spouse is already considering what needs to be done to come out ahead if a divorce is imminent. If you don't divorce, you'll at least have a better sense of your financial footing.</p> <p>If you suspect the divorce might get ugly, you should also consider keeping important documents in a safety deposit box and having important mail sent to a PO Box. This will cut the risk of anyone stealing or destroying important documents during divorce proceedings.</p> <h2>3. Immediately protect your credit and finances</h2> <p>Separation and divorce leave an individual's finances and credit score in jeopardy. An estranged party, who might or might not be feeling charitable, still has control over your financial health. Now might be the time to start separating yourself.</p> <p>Here are a few tips to protect yourself:</p> <ul> <li> <p>Create new car insurance policies that aren't tied to the other party (this protects you from the financial fallout of potential accidents or tickets).</p> </li> <li> <p>Ensure rental or homeowners insurance is in your name.</p> </li> <li> <p>Shut down joint bank accounts.</p> </li> <li> <p>Tell all lenders and companies that expect payments that you are going through separation or divorce proceedings. Give them updated contact information in case payments are late.</p> </li> <li> <p>Check to see if any loans or credit card payments can be frozen until the divorce proceedings are finalized.</p> </li> <li> <p>Ensure all loan, credit card, insurance, and utility payments under your name are paid, even if you agreed your spouse would pay that particular bill.</p> </li> <li> <p>Once the division of assets has been agreed upon legally or verbally, you can begin closing the accounts by selling off assets, refinancing loans, removing one party from the loan, or switching credit card debt to a new card.</p> </li> <li> <p>Request a credit report and look for accounts that need to be canceled or updated. You want to identify joint accounts or accounts where the other party is an authorized user. Credit reports are the easiest way to ensure you don't miss one.</p> </li> <li> <p>Change all passwords to your accounts.</p> </li> </ul> <h2>4. Negotiate support</h2> <p>Separation can be a long, arduous, and expensive task. Individuals in the middle of divorce or legal separation proceedings can appeal in the courts to be granted temporary relief also known as &quot;pendente lite.&quot; The temporary support, if granted, could lead to the primary bread winner providing temporary alimony, child support, and household payments.</p> <p>If the support isn't granted, you might be able to petition the courts to have the other party financially responsible for part or all of the debt incurred while separated.</p> <p>Divorcing or separating parties can also negotiate whether alimony payments are tax deductible.</p> <p>Tax deductible alimony payments grant the individual who pays the ability to deduct the payment from their taxes and ensures the individual who receives the payments must file the support as income. (Taxable alimony should not be tied to any children or the IRS might not consider it an alimony payment.)</p> <p>In some cases, it might be better to make the payments nontax deductible. This is more common if one spouse is in a higher tax bracket.</p> <p>Separation and divorce can be a financially perilous time. Don't forget, as you implement protective safeguards, to look into <a href="http://www.wisebread.com/small-business/can-a-failed-marriage-lead-to-business-failure" target="_blank">protecting your business from financial ruin</a> as well.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-to-protect-yourself-financially-during-a-divorce-or-separation&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Protect%2520Yourself%2520Financially%2520During%2520a%2520Divorce%2520or%2520Separation.jpg&amp;description=How%20to%20Protect%20Yourself%20Financially%20During%20a%20Divorce%20or%20Separation"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Protect%20Yourself%20Financially%20During%20a%20Divorce%20or%20Separation.jpg" alt="How to Protect Yourself Financially During a Divorce or Separation" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/samantha-stauf">Samantha Stauf</a> of <a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-myths-about-divorce-and-money-debunked">4 Myths About Divorce and Money, Debunked</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-a-divorce-improve-your-finances">Could a Divorce Improve Your Finances?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-the-moment-you-decide-to-get-divorced">5 Money Moves to Make the Moment You Decide to Get Divorced</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance alimony assets bank accounts child support divorce laws legal fees marriage protecting relationships separation taxes Mon, 10 Jul 2017 08:30:11 +0000 Samantha Stauf 1977386 at http://www.wisebread.com 6 Reasons Average People Should Consider a Prenup http://www.wisebread.com/6-reasons-average-people-should-consider-a-prenup <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-reasons-average-people-should-consider-a-prenup" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/giving_them_a_happy_send_off.jpg" alt="Giving them a happy send off" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Prenuptial agreements are pretty standard when the rich and famous get married. Considering the amount of wealth these high-profile couples have, it makes perfect sense why prenups are as common as their giant engagement rings.</p> <p>But what about us common folk? Are prenups a good idea for people without millions of dollars to protect?</p> <p>Depending on your finances and relationship, a prenup might be a good idea for you and your sweetheart. Here are six reasons why people without multimillion-dollar net worths might choose to sign a prenup before saying &quot;I do.&quot;</p> <h2>1. If either of you have children from a previous relationship</h2> <p>As of 2013, <a href="http://www.pewsocialtrends.org/2014/11/14/four-in-ten-couples-are-saying-i-do-again/" target="_blank">40 percent of new marriages</a> include at least one spouse who has previously been married. Couples who have been down the aisle before are more likely to bring children into their new marriage, which adds a level of financial complication to their union. These parents often want to make sure children from their previous relationships will be financially taken care of in case of either death or divorce.</p> <p>A prenup can help parents protect assets for their children, especially in terms of estate planning. For instance, state laws generally consider marital property to belong solely to a surviving spouse after one partner dies. A prenup could ensure that a portion of that property, or assets that the parent brought into the marriage, would go to the child of a previous marriage or relationship rather than the surviving spouse.</p> <p>While wills can cover this same ground, having just a will that leaves your spouse less than an elective share of your estate (between one-third and one half) does not necessarily preserve assets for your children, since your spouse can make a claim against your estate for the elective share. Having a prenup that spells out what assets go to children of a previous relationship, along with a will that cements the terms of the prenup, will be a much more solid method of protecting your children.</p> <h2>2. If either of you has a great deal of debt</h2> <p>We tend to think of prenups as being a way of protecting our wealth, but they can also protect you from your partner's debts (or vice versa). If you are entering into a marriage with a great deal of individual debt, a prenup can delineate who has responsibility for the debt payments during the marriage, as well as how the debts will be handled in the event of a divorce.</p> <h2>3. If either of you is an entrepreneur</h2> <p>Figuring out the specific valuation of assets, such as closely-held business interests or stock options, can be tricky. These things can cause a messy delay in the event of a divorce. If either spouse is an entrepreneur or small business owner, drafting a prenup that spells out exactly how these kinds of assets will be valued will save you a great deal of heartache, time, and lawyer's fees if you ever need to split them up in a divorce.</p> <h2>4. If either of you plans to get an advanced degree while the other works</h2> <p>It's common for one spouse to financially support the family while the other gets an advanced degree or other higher education. The problem with this division is if the marriage does not survive.</p> <p>The fallout can happen in a few ways. Maybe, for example, the degree-seeking spouse ends up much better off financially because their new education helps advance their career. Meanwhile, the supporting spouse may be stuck toiling away for a lower paycheck. Or, in another example, maybe the supporting spouse makes good money, but the degree-seeking spouse is unable to find a job or is crippled by student loans post-divorce.</p> <p>A couple who knows that one partner will work to support the family while the other goes to school may want to draw up a prenup that will make sure both of them will be financially OK if the marriage does not last.</p> <h2>5. If either of you plans to be a stay-at-home parent</h2> <p>A spouse who stays home with the children may not be bringing in a salary, but he or she is certainly saving the family money. According to a 2016 Salary.com estimate, stay-at-home parents are saving their families <a href="http://www.salary.com/2016-mothers-day-infographics/" target="_blank">over $143,000 per year</a> by doing all of the work that would otherwise have to be contracted out.</p> <p>Unfortunately, there is no real way to quantify those cost savings if a marriage dissolves, which can leave the non-paycheck-earning parent at a distinct disadvantage. A prenup can do a great deal to protect both of the spouses.</p> <h2>6. If you live in a community property state</h2> <p>In the nine community property states, which include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, everything purchased during the marriage is split 50/50 in the event of a divorce, no matter who made the purchase.</p> <p>For most couples in these states, there is no problem with the community property laws. However, suppose one spouse purchases property on her own during the marriage? For instance, a real estate developer marrying someone outside of the real estate business might use her own funds to purchase properties as part of her business, even after they are married. If the developer wants to make sure those properties remain under her control should the marriage dissolve, then a prenup would be a good idea to protect that property.</p> <h2>Making sure your prenup is mutually beneficial</h2> <p>There is a stigma to prenups, which is part of the reason why they are often seen as just being for the uber-wealthy. We tend to think of them as proof that spouses are not committed to their relationship.</p> <p>However, a prenup should be mutually beneficial, and it can be a way for you and your beloved to show your commitment to each other. You should both be satisfied that you will each be taken care of in case life doesn't turn out the way you planned.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/6-reasons-average-people-should-consider-a-prenup">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-i-learned-about-money-after-getting-married">8 Things I Learned About Money After Getting Married</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-taking-a-loan-for-your-wedding-is-a-bad-idea">3 Reasons Taking a Loan For Your Wedding Is a Bad Idea</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-money-fights-married-couples-have-and-how-to-avoid-them">4 Money Fights Married Couples Have (And How to Avoid Them)</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know">9 Family Money Matters Your Kids Don&#039;t Need to Know</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family business owners children debt education entrepreneurs marriage prenup prenuptial agreement protecting spouses Tue, 13 Jun 2017 08:30:17 +0000 Emily Guy Birken 1959137 at http://www.wisebread.com 6 Things You Should Know About Joint Checking Accounts http://www.wisebread.com/6-things-you-should-know-about-joint-checking-accounts <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-things-you-should-know-about-joint-checking-accounts" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-646688660.jpg" alt="Couple learning things about a joint checking account" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Joint checking accounts offer convenient money management for many different types of relationships, including married and cohabiting couples and adult children and their parents.</p> <p>But the convenience of joint checking accounts potentially comes with a cost that families need to consider before signing up. Here are six issues you need to think through before you open a joint checking account with a spouse, a significant other, an adult child, or a parent.</p> <h2>1. There is no accountability for withdrawals</h2> <p>Generally, couples tend to open joint accounts because they are sharing a home and expenses. That means that it's in their best interests to be responsible with the money, since it will affect them both if the rent money is spent on a weekend in Vegas. However, if one person is unreliable with money, or planning to leave the relationship suddenly, a joint account can be dangerous for the other account holder.</p> <p>This issue can be more difficult when the two account holders are parent and child. Often, an adult child will request that they be added to their elderly parents' checking account to help protect dear old Mom or Dad. They can help pay bills, and make sure that there is no fraudulent activity on the account. The problem is that both account holders have every right to withdraw money from the account &mdash; which an unscrupulous adult child could take advantage of.</p> <h2>2. Joint accounts are vulnerable to the financial mistakes of both owners</h2> <p>If either account owner has unpaid debts that go into collection, the creditor has every right to use the joint account to satisfy those debts. This means you might potentially find your joint checking account completely drained in order to pay off debts you are unaware that your co-owner has run up.</p> <p>In addition, if there is a legal judgment against either account owner, the money in the joint account could be considered part of the assets awarded in the judgment. For instance, if Jane is sued because she crashed into a bus, then the assets in the joint account she holds with her elderly father are considered part of Jane's assets in terms of the lawsuit &mdash; even if the account was originally solely in Dad's name.</p> <h2>3. A joint account could hurt your credit</h2> <p>Although your spouse or child's credit rating can't ding your score, the way they handle their money can hurt your credit if you share a joint account with them. Since creditors are required to report joint account information, an account holder who struggles with debt and paying bills on time will negatively affect the co-owner's credit rating &mdash; unless and until the money behavior improves.</p> <h2>4. A joint account can affect eligibility for financial assistance</h2> <p>If either account owner needs to qualify for any kind of financial assistance, from financial aid for college to Medicaid, the money in a jointly held account is included in the eligibility calculations for the financial aid. That means you might end up forfeiting your ability to qualify for the financial assistance if your account co-owner holds more cash in the account than you would as a sole account owner.</p> <h2>5. Your co-owner can close the account without your permission</h2> <p>Certain banks require consent from both parties to close a joint checking account, but most do not. Typically, state laws dictate that any person who can write checks on the account can close it, at any time, regardless if their co-owner is present or even aware. The benefit to this is if one party relocates, passes away, or otherwise becomes incapacitated, there are very few issues the remaining co-owner must go through to close the account. The danger, however, lies in the potential for one co-owner to simply deplete the funds, close the account, and disappear. Always make sure you're sharing a checking account with someone you trust.</p> <h2>6. Parent/child joint accounts can have estate implications</h2> <p>A joint account holder retains sole control of the money in the account in the event of the co-owner's death. In the case of spouses or other cohabiting couples, this kind of financial transfer in case of death is not a problem. However, if the account owners are a parent and child, the issue is much more complicated.</p> <p>That's because the money in the checking account stays with the surviving account holder, bypassing whatever the deceased account holder may have put in their will. For instance, Loretta has three children and has specified in her will that her assets will be distributed evenly among them. But Loretta has a sizable joint account with her son Jason, and upon her death the money in that account will be solely under his control. Unless Jason feels like splitting up the money in the account three ways, his siblings are not going to see that portion of their inheritance.</p> <h2>Merge with caution</h2> <p>While joint checking accounts offer convenience to couples and parent/child relationships, they also come with a number of potential headaches. Make sure you know what you are signing up for before you and your potential co-account owner start picking out your personalized checks.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/6-things-you-should-know-about-joint-checking-accounts">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-liquidate-a-loved-ones-estate">How to Liquidate a Loved One&#039;s Estate</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-average-people-should-consider-a-prenup">6 Reasons Average People Should Consider a Prenup</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-put-your-spouse-on-a-budget-without-ruining-your-marriage">How to Put Your Spouse on a Budget Without Ruining Your Marriage</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-your-taxes-will-change-after-you-have-a-kid">Here&#039;s How Your Taxes Will Change After You Have a Kid</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Family children credit score debts estate planning joint checking accounts marriage parents shared finances spouse withdrawals Mon, 17 Apr 2017 08:30:13 +0000 Emily Guy Birken 1927307 at http://www.wisebread.com 11 Secrets You Need to Tell Your Financial Adviser http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/11-secrets-you-need-to-tell-your-financial-adviser" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-165869622.jpg" alt="Couple sharing secrets they need to tell their financial adviser" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>So you've made an appointment to sit down with a financial adviser and formulate a plan for your future. Are you prepared to talk about your full money situation? In order to truly help you, your financial adviser needs to look at the big picture. That means there can be no major money secrets.</p> <p>Financial advisers will often begin each session by asking a lot of questions that may seem personal. But they'd be negligent if they didn't. In fact, it's their fiduciary duty to learn as much about you as they can in order to advise you properly.</p> <p>Here's a list of secrets you'll need to share with your financial planner if you want the best advice.</p> <h2>1. All of your debt</h2> <p>When you're being crushed under a mountain of debt, you may not want to talk about it. But a financial adviser is perhaps the best person to discuss it with. Your adviser can't craft a sound financial plan for you if they're unaware that a good chunk of your income is going to pay off debt. If you let them know about your full debt situation, however, they may be able to assist you in climbing out of the hole and onto the path toward financial freedom.</p> <h2>2. Any job loss</h2> <p>It's not always easy to admit you are out of work. But a financial adviser can't help you properly if you don't provide a full picture of your income situation. If you're out of work now, let your adviser know. If you were out of work for a long stretch in the past, let them know that as well. Financial advisers can also help you navigate what to do when your income has been cut, as well as advise you on what to do with old 401(k) accounts and pension money. (See also: <a href="http://www.wisebread.com/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do?ref=seealso" target="_blank">If You're Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do</a>)</p> <h2>3. Family members you support</h2> <p>Do you pay child support? Do you regularly send money to your brother up in Buffalo? Do you have an elderly parent living with you? Your financial adviser will want to know about any money you spend to support other people, even if it's only occasionally or informally. These are expenses that have an impact on your overall financial picture, and are not the kinds of costs that you can easily eliminate.</p> <h2>4. Sizable gifts</h2> <p>You're fortunate enough to be given $25,000 from your generous Uncle Steve, but you feel like it's really not something you want people to know about. After all, who might come knocking on your door now that you have this extra cash on hand? That's understandable, but it's important to tell your financial adviser, because they can offer advice on what to do with the new funds. An unexpected influx of cash, even if it's just a one-time gift, can have a ripple effect on your overall saving strategy.</p> <h2>5. Tax troubles</h2> <p>Have you been diligent about paying your taxes? If not, this is something you'll want to tell your adviser. This goes for late taxes, tax liens on properties, and past audits. The longer you wait to take care of tax problems, the more you may end up paying in penalties and fees. Your financial adviser can help you clean up your tax issues, and will be in a better position to help you plan your future.</p> <h2>6. The status of your marriage</h2> <p>If you're meeting with an adviser, it helps to let them know if you're about to get married, or if your marriage is about to end. Marriage and divorce have all kinds of financial implications on everything from income to taxes to planning for retirement.</p> <h2>7. Your vices</h2> <p>Gambling. Alcoholism. A shopping addiction. We all have our bad habits, but it's important to be aware of those vices that impact your finances. Are you at risk of incurring debt due to a major gambling binge? Is alcohol preventing you from landing steady work? Your financial adviser can't accurately assess your finances if they don't know the situation.</p> <p>According to Doug Amis, a CFP with Cardinal Retirement Planning in Cary, NC, even casual marijuana use is something clients should disclose to planners, because many life insurance companies still test for it.</p> <h2>8. Anything that your kids need to know</h2> <p>Hans Scheil, CEO and owner of Cardinal Retirement Planning, says that his most challenging clients are those who have kept important information from family members. This secrecy can create difficulty in later years, when facing important estate decisions.</p> <p>&quot;What happens with people now is that they develop dementia, or some sort of chronic illness, and they end up needing care,&quot; Scheil said. &quot;This is when all of the family scandals come out.&quot;</p> <p>Scheil says it's important to anticipate what your children and grandchildren may need to know about your estate to avoid strife down the road.</p> <h2>9. Charitable giving</h2> <p>It may seem odd to think of this as something you'd hide, but financial advisers say they've met with clients who have quietly been giving to a cause that their spouse or other loved ones might not agree with. Your donations to charity may not seem like anyone's business, but they can impact your overall savings if you give a substantial amount. A financial adviser can also walk you through getting tax deductions for your charitable donations.</p> <h2>10. Your own lack of financial knowledge</h2> <p>Are you the type who doesn't know an IRA from an IPA? Are you mystified by mutual funds and baffled by bonds? It's OK, your financial adviser is not there to judge you and will likely be more annoyed by any attempt to bluff your way through a meeting. Financial advisers can help you understand the ins and outs of investing and estate planning, so it's useless to pretend to know more than you do.</p> <h2>11. All of your side hustles</h2> <p>When your financial adviser asks you about your income, they want to hear about everything. Not just your day job, but your side work giving piano lessons, your freelance writing, your pottery sales, and even your gambling winnings. You may be hiding this income because you don't want to pay taxes. But your adviser needs to know about this extra income, or else any financial plan they create will be flawed. Moreover, your financial adviser can often give you advice on how to turn a quiet side hustle into a legitimate, profitable business.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-you-need-to-know-about-divorce-and-credit">What You Need to Know About Divorce and Credit</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-yourself-financially-during-a-divorce-or-separation">How to Protect Yourself Financially During a Divorce or Separation</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-myths-about-divorce-and-money-debunked">4 Myths About Divorce and Money, Debunked</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-a-divorce-improve-your-finances">Could a Divorce Improve Your Finances?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance debt divorce financial advisers financial planning gambling honesty job loss marriage Secrets taxes Tue, 28 Mar 2017 10:01:05 +0000 Tim Lemke 1915280 at http://www.wisebread.com