Spousal Finances

It’s inevitable that financial decisions cause at least some sort of tension in the home.

Often to avoid this one of the spouses oversees the financial decisions while the other just trusts them.

It makes sense really. Not everyone is interested in the day to day of managing money or investments, and some people are just bad at it. In many cases the spouse with a knack for numbers maintains control and makes the decisions – ideally making the best decisions for both.

Though this is extremely common, I don’t advise it.

If the one member controls all aspects of the family’s monetary decision making, what happens if disaster strikes, and they’re no longer able to make the decisions? Maybe an injury resulting in a prolonged hospital stay? Or heaven forbid a death?

What we encounter is the remaining spouse forced into a duty they haven’t been prepared for. It could spell disaster.

It’s not something you want to think about, but it’s a real possibility.

My advice is that both spouses are fully informed and at least have a basic understanding of the financial state of the family.

Ensure you both know passwords and logins for bank accounts. Make sure everyone is clear on investment portfolios, savings, and how the household budget is built.

And if it’s still too complicated, it’s always encouraged to include a trusted financial advisor in the conversation.

Avoiding this topic just because it causes tension is a path fraught with peril. You don’t want to find yourself forced into learning the family financial situation in the midst of a disaster.

All families should have a plan and open communication regarding family finances. It’s just good planning and common sense.

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