Are you marrying an asset or a liability?

Five financial conversations to have with your fiancé

With spring in the air, many couples are swept up in wedding plans. Yet, amidst the excitement, it’s easy to overlook one crucial aspect: financial planning. Metropolitan Gauteng’s General Manager, Queen Malobane, urges couples to have open, practical discussions about money before the big day.

This isn’t just about setting a wedding budget; it’s about ensuring your partner’s financial habits align with the future you both envision,” says Malobane. “Knowing each other’s financial behaviour early on will reveal if you’re marrying an asset or a potential liability, sparing you from any devastating financial surprises down the line.

Malobane unpacks 5 key conversations to ensure a financially secure start to your marriage:

Income and savings goals
Transparent discussions about each other’s income are fundamental to planning your life together. This goes far beyond the wedding itself and will guide your joint financial life after marriage. For example, can you afford to buy property, start a family, or work towards other major goals? Knowing your combined income helps in planning these next steps together.

In many African cultures for example, wedding costs may include lobola - a tradition that can add financial pressure. If it can’t be paid all at once, consider setting up a savings plan to manage the cost over time. This shared goal also encourages a foundation of financial transparency and responsibility.

Credit records and debt management
Another crucial topic to cover is debt. By sharing credit reports, you’ll gain a clear picture of each other’s debt management habits and any outstanding liabilities. Are debts being managed responsibly and are there substantial amounts of debt that may impact your financial goals?

Credit behaviour often reflects broader financial habits, so understanding each other’s financial history helps you plan how to handle money as a couple.

Choosing a marital contract
Choosing the right marital contract can significantly impact your financial future. In South Africa, couples can select from three main options: community of property, antenuptial contract with accrual, and antenuptial contract without accrual. Each has different implications based on your financial goals and situation.

By default, lobola marriages for example, are regarded as community of property marriages. However, if one or both of you owns a business, an antenuptial contract without accrual may be advisable, protecting each partner’s assets from potential business-related risks. Remember, any marriage will end by means of death or divorce, and having a marital contract in place can protect each party financially in either case. Consulting with a financial adviser is critical to ensure your contract aligns with your life goals.

Estate planning and life insurance
Discussing Wills and life insurance may feel uncomfortable, but it’s a necessary part of financial planning for married couples. Contrary to some cultural beliefs, taking out life insurance on your partner is a proactive way to secure each other’s futures. Naming each other as beneficiaries ensures that the surviving spouse has immediate access to funds and can maintain their lifestyle without waiting for the estate to be wound up.

Family dynamics and cultural beliefs
It’s a reality that many marriages involve not just two individuals, but their families as well. And any financial obligations tied to family dynamics can affect your own household finances. For instance, your partner might currently support relatives or pay a sibling’s school fees, which would presumedly continue after marriage. Such commitments may need to be budgeted for as part of your household’s ongoing expenses.

Cultural beliefs can also influence financial priorities. Traditional practices, like ceremonies that require specific preparations, may have additional financial implications. An open discussion about these dynamics ensures there are no misunderstandings later on, helping prevent potential conflicts with in-laws or between you and your partner.

It goes without saying that wedding costs can quickly escalate, particularly if you’re planning on having multiple celebrations. While celebrating your love is essential, Malobane warns against taking on unnecessary financial strain that could hinder future plans. “My final piece of advice would be to resist societal pressures and focus on creating a wedding within your means, as this will allow you to start your marriage on solid financial footing.”

It all comes down to transparency and staying on top of your finances as a team. “By having these financial conversations now, you’re not only planning for a wedding but also building a sustainable future together. Regular financial check-ins in the first years of marriage will help you adapt to life’s changes and stay on the same page financially. Remember, transparency and teamwork in finances are key to a healthy, resilient marriage,” Malobane concludes.

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