Married couples share a common destiny and being transparent about their finances helps in averting crises.
The marriage season has set in. Thousands of couples will tie the knot and vows will be taken for a happy married life ahead. However, along with marriage vows taken by the spouses, one vow that should be taken by both partners is to be transparent between them about their family finances.
Married couples share a common destiny and being open about their finances only helps in creating wealth together and avert crises during family emergencies, besides cementing the relationship.
“Financial conversations have the tendency to either break or make a relationship. It is money after all that brings in prosperity in a couple's life. Also, in these unpredictable times, it is crucial to prepare your spouse clearly about the finances to deal with in an emergency. So, money conversations on whether the income will be jointly or individually managed for future objectives should be a top priority,” Adhil Shetty, CEO, BankBazaar told Moneycontrol.
Not having a healthy dialogue about finances could have an adverse impact on the relationship between spouses and lead to distrust. “Not discussing money matters can lead to communication gap in the relationship. In the long run, this could lead to distrust, disagreements and in extreme cases maybe even lead to divorce. Having transparency among partners helps cement the relationship in the long run,” warns Amar Pandit, Founder and Chief Happiness Officer at HappynessFactory.in.
Shetty says important topics like savings, insurances, future expenses or buying a home should figure in family conversations. “Your spouse should have easy access to all records maintained on liabilities and assets. It is wise to maintain a copy of important documents related to investments, property, insurance, bank account, nominee details etc. Passwords including that of bank account login, emails and insurance login etc. should be stored safely in a diary that's easily accessible to both of you,” he said.Shetty points out that the huge unclaimed deposits in banks and in lockers and unclaimed investments could be due to the fact that the right family claimants did not know about the details. “Untimely demise of the person in the know of things could land the loved ones in a financial mess as they will remain clueless about how to run a household. This would also mean losing out on hard earned money that you saved with much perseverance. In India, huge sums of unclaimed money and valuables in lockers are already lying in several banks. The same goes for many investments unclaimed so far. This money belongs to deceased who perhaps did not inform their spouse or family about these accounts and investments,” Shetty said.