The Buyt Desk
Have you disclosed all your financial details to your spouse? Better share information regarding assets, debts, expenditures, investments made, insurances etc.
In Indian marriages, it is the man who manages all the finances of the house single-handedly. In many families, even the finances of a working wife are handled by the husband where he shares the money but no information about investments, expenditure or income is shared. When only one partner knows all the financial details and the other partner has a minimum or zero ideas about finance it can be disastrous if one of the partners is no more. It is always good for both the spouses to be in the loop as far as finances are concerned.
Should married couples share financial information?
Marriage is a unification of two people who have decided to share their lives forever with each other. This sharing should not be just about each other’s personal and emotional space but finance too. Nowadays, couples do share their financial lives but not all are sharing the responsibility of managing finances. It may feel time consuming when both review and plan the finances but it is really worth it. If one spouse has a sudden illness or passes away, the whole responsibilities of the family suddenly shift onto the shoulders of the other partner. Without any prior knowledge or experience, the spouse alive will have major challenges and may fail to run the show. Get your partner to discuss now and share your family financial picture with him/her so that the other is prepared to run the show in your absence.
Quiz to know- How much do you know?
Take this quiz to know if your spouse is as ready as you to manage your family and household finances in your absence. Answer these questions together to know how prepared you both are to handle family finances.
1. Do you know all the bank account details of yourself and your spouse? Can you access them if needed? Do you have access credentials?
2. Do you have details of safe deposit and can you access it?
3. Do you know where you and your spouse’s money are invested?
4. Do you know about all the properties owned by you and your spouse?
5. Do you know about all the family-owned investments including the ones made by you 2 and inherited?
6. Do you know who the beneficiaries of all accounts are?
7. Have you fully disclosed your assets, liabilities and credit reports with your spouse?
8. Do you know the assets, liabilities and credit reports of your spouse?
9. Do you know where all the incoming cheques from other sources of income are deposited?
10. Do you know about all the payments made monthly or annually? Like Utility bills, Credit cards, Cell phones, Mortgage or rent, Student loan payments, Property taxes, Vehicle loan payments, Insurance, Loan repayment and many more
11. Do you know the mode of payment for all the above bills?
12. Are you aware if your spouse has a will or powers of attorney papers made? Is it updated as and when needed?
These questions will make you understand your and your spouse’s knowledge about family finance.
What financial information you must share with your spouse?
To bring transparency with your spouse in your financial life follow the below details –
1. Share how much you are earning and different components of the salary.
2. Irrespective of your spouse’s earning conditions, share all investment details with him/her.
3. Share all sources of earnings, so both together can chalk out the monthly budget.
4. Share all insurance policies brought and also the agent contact details.
5. Record complete investment details like FD, mutual fund, gold, stocks, shares and cryptocurrency. Share this document having account numbers, usernames, security questions, and passwords with your spouse.
6. Record complete loan details including housing, vehicle, education, business or personal. Share this document with your spouse.
7. Share the information of the nominee of all accounts.
8. Share your financial advisor’s contact details with your spouse.
9. Share your ideas about what should happen in your absence/death.
10. Decide on who will have the power of attorney if both are dead.
Conclusion
Never hide anything related to finance with your spouse because you never know when you will be gone. Always document every financial detail and let your spouse know how to access it when needed. Keeping financial matters secret can create trouble in married life. For a healthy married life share all details with your spouse and keep them well informed and prepared to run the show in your absence.
