Advisors with married clients, or who expect to acquire the spouse of an existing client, face a unique challenge that can be as complex as marriage itself. Even the most compatible couples can differ when it comes to perspectives on money, emotional influences, and their visions of the future. The Wall Street Journal's Cheryl Winokur Monk examines the issues surrounding married couples' wealth.
Full article: When My Money and Your Money Becomes Our Money
An excerpt below:
"Couples have all sorts of reasons for wanting to merge their finances. For some spouses, keeping separate finances is simply too complicated, especially once they have children. For others, financial trust is a crucial part of being a couple, and joining finances helps them feel more like a couple and less like roommates. For couples nearing retirement, there is the issue of supporting their joint lifestyle after neither spouse has a regular paycheck coming in."
For all of these couples, the trick is to get the benefits of a financial union while minimizing the emotional roadblocks that come with the fear of losing independence and control, say financial advisers and couples therapists. Among other things, couples need to be willing to discuss their fears and desires around spending and saving. Joint budgeting also is important, and when sticking points arise, couples need to be willing to compromise and craft solutions that are amenable to both spouses. To that end, they need to avoid being judgmental about a spouse who thinks about finances differently than they do."
Full article: When My Money and Your Money Becomes Our Money
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