Uncoupling Your Finances with Alicia & Gina
On this episode of Financially Naked: Stories from The Financial Gym, our hosts are Gina, a Certified Financial Trainer, and Alicia, COO of The Financial Gym. Today, they explore the essential aspects of coupling and uncoupling finances. As they discuss why it's necessary on both ends, they stress the importance of having an organized financial plan.
Every couple is unique, and strategies for managing finances may require some trial and error. This episode delves into practical tips on staying organized, initiating the coupling process, and navigating the uncoupling journey to ensure financial security at any stage of your relationship.
Podcast Notes
If you're in a relationship, you want to be aligned with your partner when it comes to money. The complete picture is important as it ensures you're working with the whole equation. You have to talk about money.
Work as a team. Figure out each person's strengths and what they like to do. From there, you can lean in. The goal is for everyone to be involved comfortably.
Remember to talk about everything, from the day-to-day plans to the big life choices. You're in it together. Collaborating can create a clear path for you and your goals as you grow your life as a unit.
There is no wrong way to manage your finances. It's about finding a system that works for you and your family. You may have to try a few things to see what feels right.
Finances are one of the most stressful aspects of the relationship, so it's important to start early and not shy away from the topic.
Creating the Relationship Unit
One option is to combine everything and see what's there. Even if one person makes more or comes into a relationship with more debt, it all becomes part of the big joint equation.
It's important to be transparent about all aspects of your finances. Don't hide any debt or assets you're bringing to the table.
The goal is to create a system that works for you and makes life easy. When you get married, you're a legal entity, and moving as a unit can be powerful in working towards your goals.
You do not have to combine everything if that doesn't work for you. There are tools out there that make collaborating seamless, even with separate accounts. Communication is key since there's less natural collaboration than when accounts are joint.
When you're dating, living in the same place, and sharing expenses, you don't have to rush to combine everything, but it may be beneficial to have a joint account for shared expenses.
If you're getting married, consider a prenup. It is a way to protect yourself, your assets, and what you've built before entering the relationship. Signing a prenup doesn't mean you're setting yourself up for failure. We never want to think about uncoupling, but life happens.
Estate planning is another important element of financial planning in a relationship. It's important to have the basic documents in place to ensure there is a plan if you pass away unexpectedly.
The Process of Uncoupling
Uncoupling at any relationship stage can be challenging, but when you're married, it adds an extra layer of complications. People split for various reasons; sometimes, it's amicable, but others are contentious. Each situation will be different.
If you're getting divorced, we recommend mediation. It's easier when you're talking or things are amicable, but we know that doesn't always happen. You want to have a good attorney. Take your time and do your due diligence.
The first step is to get organized and review the full financial picture to see where you are. Create a list of everything that needs to be checked and done to get yourself organized. It's important to know where you stand.
If you're married, you can run a credit report for your and your spouse's social security number. This will give you a full list of accounts, and you can start to decide how everything will be split.
From there, start closing the joint accounts and credit cards and ensure each person has their own accounts ready and can move forward.
If a home is involved, you have to plan for what will happen next. Each state has different rules, so it's important to check the laws where you are.
If you want to work with a Certified Financial Trainer to help navigate your finances as a couple, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Resources
Meet The Trainer
Gina Funaro, Certified Financial Trainer
Alicia Lazarto, Chief Operations Officer