Newlyweds Face Financial Decisions Before 'I Do'

While nearly 2.5 million couples married last year and divorce rates have slowed, marriages tend to hit the rocks for one major reason: debt.

Experts say that one of the best ways to deal with the touchy subject is to discuss the issue before saying, "I do." Many engaged couples head into marriage without a clear picture of their financial situation and expectations.

"Unfortunately, few engaged couples really discuss money and that can lead to real problems. All I can say is talk, talk, talk about money before you get married maybe even before you get engaged," certified financial planner Karen F. Norman said. "Having open and healthy discussions about money before and during your marriage will help you in everything you experience during that marriage and keep you from money arguments and unpleasant money surprises."

Engaged groom David Weeks said that talking helps stem uncomfortable money moments.

"We're big on communication. We figure that if we're open on everything, the big problems will seem small," Weeks said.

Weeks, 28, and his fiancé, Dana Lyons, 23, are set to get married in November. The two have been busy preparing for the big day, but they have also kept a close eye on their financial future.

Budgeting Can Build Foundation For Financial Stability

One of the first things that financial planners say couples should do is work on setting up a budget.

Robert Walsh of Lighthouse Financial Advisors Inc. said that preparing for the wedding day can be a good way to learn about budgeting.

"The wedding planning time is a great time to build life-long habits," Walsh said.

He stressed that going into debt for one day is not the way for a couple to start the rest of their lives.

Couples can give themselves a good base for their financial future by setting up a monthly budget to track spending and savings.

For Dana and David, David manages their budget. He uses a home computer program to track their accounts and expenditures.

"We found it was easier just having one person in charge rather than two people in there messing with things," Dana said. "I know where we are financially, but we don't want to have too many cooks in the kitchen."

Dana and David also take time out to refocus their budget goals as the months go by.

"(Couples) really need to sit down and discuss their money issues, whether it be budgeting, spending, saving, investing, keeping separate accounts, etc. The more they are on the same page, the better," said certified financial planner and Gold Medal Waters, LLC president Matthew J. Kelley.

Sitting down with a financial planner can also help couples bring up some of the issues they may have been afraid to discuss with each other on their own.

"Working with a fee-only financial planner can be a great way to have an objective party at the table with you to help the discussion and establish common goals," certified financial planner Susan C. Elser said.

Adam Minnick, 27, and his fiancé, Gloria Corey, 25, are getting married in about a year and are just starting to do their financial planning. They have broached the topic of money.

"It's becoming a more comfortable topic. It's a little contentious, but a lot more tolerable than it used to be," Adam said.

Walsh offers these five tips for newlyweds:

1. Save 10 percent of income.
2. Fund retirement.
3. Have a cash reserve.
4. Don't build consumer debt.
5. Buy the right-sized house (about three times income).

Preparing For The Future

Although couples need to prepare for the immediate years, the future should also be a target of discussion.

A husband and wife should each fund his or her own retirement plans, Walsh said.

Dana and David as well as Adam and Gloria have gotten a jump on that. Each has set up 401k accounts or put together portfolios.

Experts say couples should take time to re-evaluate and refocus those investments and goals throughout the years as their marriages grow.

Adam and Gloria are looking ahead to purchasing a home in Albuquerque, NM, where they live.

"I've been more focused recently on saving money," Gloria said.

Dana and David are also looking to the future when they have a family and what they want to be able to do down the road.

"We'd like to get to the point where we can do the things our parents helped us with -- be able to help our kids," Dana said.