3 Things Spouses Should Know About Their Household Finances
By Solid Serenity Legal Solutions
According to a 2020 UBS study of 2,700 people, 54% of Millennial women allowed their spouses to make family financial decisions. While playing to each other’s strengths in a relationship can be a good thing, both spouses should know important financial information.
Here are 3 things spouses should know about their household finances.
(1) What You Make and What You Owe
Spouses should have a general idea of what each spouse’s income is and how much they pay in bills each month. If the spouse who handles the financial decisions becomes unable to do so for any reason, the other spouse will need to take the reins.
Both spouses should know how much they have coming in and how much they spend on bills. Also, spouses should know where to access accounts for the bills you have. Protect your spouse by ensuring they have everything they need to care for your family if you can’t.
(2) What Assets and Insurance You Have
As an estate planning attorney, I am often surprised by how many people do not know what they own. Both spouses should know what they own, both as a couple and separately. You should also both discuss how much money you would need to live if something happened to one of you. Life insurance and disability insurance are great tools to protect each other when you lose an income.
The easiest way to keep everyone in the loop is to keep a folder in a safe place, and possibly on your own computer, with the insurance you have. You can keep a list of what insurance companies you use, the insured person’s name, the amount of the insurance, and the account number. This will allow your spouse easy access when they need it.
(3) What the Important Legal Documents Say and Where They Are
All families should have estate planning documents. These documents can be any number of combinations of Wills, Trusts, Durable Powers of Attorney, and Healthcare directives. Make sure your spouse is up to date on what legal documents you have and what they say.
Similarly to your insurance policies, you should keep all your legal documents in a mutually agreeable, safe place. You want your family to have easy access to these documents when they need them.
For help getting your estate planning documents in place, book online to speak to our attorneys.