Money & Marriage: How you know you're financially compatible

By: NBC17 Staff | MyNC
Published: February 14, 2012

According to the Diamond Information Center, ten percent of the 2.3 million engagements in the U.S. every year happen on Valentine's Day. Before popping the big question, do you know if you're financially compatible? Finance coach Pete D'Arruda, host of the nationally-syndicated radio show 'Financial Safari' discusses 4 ways you can save yourself a lot of heartache and money troubles.

1. Share your financial past and present. Discuss incomes, debts, inheritances, total line of credit, and FICO scores. Try to know as much as possible about each other's financial situation to avoid unpleasant surprises down the road. This is especially important when it comes to credit card debt.

2. Identify spending habits. Are you an impulse shopper or a penny pincher? What are your financial priorities and where could you stand to cut back? Would you be willing to create/stick with a strict budget? If you aren't willing to get on the same page financially, you can expect some serious frustration in other areas of your lives.

3. Decide on joint or separate accounts. It's important to know where your other half stands on whether to separate or combine finances. There is no "right" answer; you will have to determine what best suits your needs. For example, dual-earners may wish to keep some accounts separate, but also maintain a joint account for household spending or shared savings goals.

4. Consider the tax implications. Make sure you understand the implications of marriage on your taxes. This will depend on how you decide to combine your finances, the influx of assets your partner brings and how you decide to file.