AS A COUPLE PLANS THEIR WEDDING they are also planning their lives together. Welcome to our “Happily Ever After” section where we offer advice from professionals as you plan your future together.

ESTATE PLANNING

AS YOU BEGIN YOUR LIFE TOGETHER, there are probably many things you will plan for – when to have children, your first house together, your first anniversary and a myriad of other things.  However, there is one thing you may not think of – estate planning.  If you do think of it, you may decide to put off for the future.  You may be young and in good health and you may not think estate planning is important for you and your new spouse.  But, before you decide it’s something you can put off until later, consider the following scenarios and see if you and your new spouse are adequately prepared for them.

Many of us are familiar with the case of Michael and Terri Schiavo and what can happen if your wishes are never written down in a living will.  There was a similar case in Louisiana a few years ago dealing with an older woman. You probably never heard about that case because the woman had a living will and the court found she had expressed her wishes regarding the issue and her wishes were not to be kept alive indefinitely.  Without a living will, would your new spouse know what your wishes would be?

A well-drafted power of attorney can give the person of your choosing the right to make medical decisions if you are unable to.  The same applies with regard to your finances.  Without a power of attorney appointing an agent, your loved ones may have to file a lawsuit against you so someone can have the legal authority to take care of your financial business. 

Without a will, separate property is inherited first by descendants, children and grandchildren, then by brothers and sisters, then by ascendants, parents and grandparents, and then surviving spouses.  Estate planning is imperative. 

Although estate planning is generally something people put off until they are older, it is something that is very important to consider as you enter into a new marriage.  To make sure you will be prepared if something unexpected happens to you or your new spouse, you should consult with a knowledgeable estate planning attorney as a part of your marriage preparations.

COMBINING FINANCES

You have the perfect opportunity to reassess all your finances when you get married. It’s time to consolidate and to get better rates. Considering the majority of newlyweds say that money is the number one topic they fight about, it might be easy to avoid this conversation. The earlier you combine finances, the sooner you can increase your savings. Here’s a few tips to assist you in your merge.

GET ORGANIZED It’s time for full disclosure. Schedule uninterrupted time for both of you to be in front of one computer and bring all the following documents to the table. In one spreadsheet, make columns of your bill balances, interest rates, deductions, and earnings. Make sure and have items such as credit reports, pay stubs, retirement and bank statements, loan statements and anything else that adds or deducts from your cash flow.

CREATE A REASONABLE BUDGET Now that you have all your money owed and earned in one easy-to-read document, it’s time to build a budget. Start with your combined monthly take-home income and subtract categories such as rent, mortgage, electricity, cable, phone, car payments, gas, food, medical bills, health insurance, investments, eating out, music, grooming, fun money and emergency money. Trying to stay on target monthly is too hard. Treat your budget like a business and plan to balance it every three months.

AVOID COMMON PITFALLS With the goal of saving for future aspirations: a bigger home, kids, exotic travel, it’s going to take a few months to adjust. Don’t sneak money, it will always cost you in the end. Don’t set unrealistic goals. Don’t be too cheap. Be honest with yourself and each other.