Merging finances with your fiance's

BUFFALO, N.Y. (CW-23) - Waiting until after you say "I do" should not be the first time you talk to your new spouse about merging your financial lives. Here's some tips from CPA Rosemarie Steeb with some important advice for Winging It's Wedding Week 2012.


1)  Understand your financial compatibility - One of the last things that most couples think about before getting married is money. Unfortunately, one of the most common reasons why couples go through a divorce is also money.  Therefore, after you determine you are personally compatible find out if you are financially compatible. Discuss what is important to both of you and determine your financial goals as a couple. Figure out how you're going to tackle your finances. Is one of you going to be in charge? Are you a team, or are you splitting things up?  Remember, any plan should merely be a guide and as your relationship progresses who handles what may change.

2) Changing your name - There are a variety of impacts to this simple task that a couple might not realize.  Once you have your new name on your driver license, it'll be easier to add each other to existing accounts as a spouse or to apply for joint accounts.  Also, especially if you expect to file a joint tax return with the new name, you must ensure the name on your tax returns matches the name registered with the Social Security Administration (SSA). A mismatch could unexpectedly delay a tax refund. The IRS computers will not be able to match the new name with the Social Security Number (SSN). It's easy to inform the SSA of a name change by filing Form SS-5 at a local SSA office. It usually takes two weeks to have the change verified. The form is available on the agency's Web site, http://www.socialsecurity.gov/, by calling 800-772-1213, and at local offices.

3) Talk about your debt and manage it accordingly - If one or both of you are coming into the marriage with significant debt or poor credit, then it is imperative to have a clear understanding of what you owe individually and jointly because can make a big impact on your credit in the long term. Take time to review your credit report before entering the relationship and how it will change when you get married.  While you will both keep your separate credit profiles, any new joint credit will now appear on both reports. Since existing debt incurred before the marriage might now be the responsibility of both parties, you may want to consider a prenuptial agreement that spells out how debts will be split

4) Merge accounts or more like roommates - Combining accounts and consolidating your billing for items such as insurance (especially auto), cell phone, etc. may give you a large financial advantage and save money.  However, Steeb does not recommend merging all bank accounts.  She suggests following one of two options: (a) create a joint checking account to pay bills and you each deposit a certain amount every pay period; or (b) separate household bills and each of you pay certain ones. This way if something happens to one of you the other will not have issues with access to funds.