Top Financial Pitfalls of Newly Married Couples

Top Financial Pitfalls of Newly Married Couples - Part 2

2006-09-08

Back to part 1 of Top Financial Pitfalls of Newly Married Couples

A large number of overdraft fees are charged to married couples who have joint bank accounts. In addition to joint bank accounts, you will want to avoid using joint credit card accounts, because the same problems can arise. If there is a lack of communication in your marriage, you can run into serious credit problems. It is best to keep both your bank and credit card accounts separate. That way, if you become overdrawn, there won't be any arguments about who is responsible for not watching the account. Another common financial pitfall that a lot of newly married couples fall into is co-signing for an automobile.

Co-signing for an automobile is a bad idea for a number of reasons. First, both partners are equally responsible for what happens to the car. If the couple should decide to divorce, both partners will be responsible for paying off the vehicle, and if one spouse chooses not to pay it off, the other will be stuck with paying th full cost of the bill. If either the husband or wife gets into an accident, both will be responsible from any costs that involved with replacing the vehicle. Only one spouse should sign for the vehicle, and the practice of co-signing for a car should be avoided.

Another financial pitfall that is very common with married couples is when one spouse decide to reveal the news that they have a large amount of student loans from college, and they will need help paying them off. This is typically done after the couple is married. There are a number of problems with this. While the loans can be paid off if both couples make payments on them, this can place a strain on the marriage, and it is dishonest to wait until after the marriage to let your spouse know that you have a huge amount of debt. The best way to avoid this is to check the financial background of someone you are considering marriage. If they have a large amount of debt, you may want to avoid marrying them.

Another financial pitfall that is often made by newly married couples is choosing to have children before they are financially capable of supporting them. This can be harmful to both the children and parents. It is best to wait a bit before having children to make sure you have a stable income and are financially able to care for the child.

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