Financial Tips for Changes In Marital Status

Whether you're getting married and ready to couple your finances or find yourself in the midst of a separation or divorce, be ready for the change with these helpful resources.

Getting married

Your big day will be exciting and memorable, but planning and financing a wedding can be overwhelming. Using tools and accounts described here can make budgeting and saving for your wedding easier.

Developing a budget for your wedding depends on your creativity and what you can realistically spend. Increasingly, couples are paying at least part, if not all, of the costs of the festivities. How much do you and your future spouse have to start with? How much can you save until your wedding day?

Saving is easier when it's done systematically. You can set aside money automatically - without even thinking about it - every pay period or every month with an automatic transfer to your savings account.

Where you keep your money counts, too. With the timetable you likely have, you may want to consider short-term investments like certificates of deposit (CDs) and money market accounts.

If you or your future spouse owns a home or condominium, you may want to consider using a home equity loan or line of credit to pay for your wedding. Using the equity in your home would allow you to keep your savings and other investments in place and may provide you with tax deductible interest payments.

Separation and divorce

The financial ramifications of separation and divorce can be surprising and devastating. You can minimize the possible financial fallout and learn how to uncouple your finances.

One of the things that will help you during separation or divorce is an accurate financial picture. Some of the records that will be useful to demonstrate who has which financial obligations include:

• Copies of tax returns
• Bank and brokerage statements
• Loan applications
• Deeds
• Contracts
• Insurance papers
• Prenuptial agreements
• Checkbook records
• Outstanding credit card bills

With divorce, generally you and your spouse are each responsible for your personal debts, but in most states, both of you are equally responsible for debts you both signed for during your marriage. The divorce decree should state who has responsibility for any joint debt.

What has your name on it, as well as what doesn't, is important. If you only have joint bank accounts and credit cards, consider setting up a checking account and establishing credit in your name with a credit card before you get a divorce. Doing so could payoff later if you need to rent an apartment or need to show a financial track record for other reasons. Learn about Bank of America checking choices.

Separation or divorce will likely impact your wallet, and you may need a new financial game plan. What old expenses will disappear and what new ones will arise? What can you afford? What lifestyle adjustments will be necessary? Let a Bank of America financial advisor help.