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Introduction

I love Charles Spurgeon’s quote, ‘before you marry once, think twice.’ Do people generally think it through enough before getting married? It seems the longer you take to get married (not always) the better the chances you are finding someone that works with you.

Whatever be the case, it is necessary to plan various aspects of the dream as the journey is usually far. One of the very important aspects of the future life plan is finance. This article is relevant to those who are already married as well. There are ideas that can be implemented from this piece regardless of your status.

Before you get swept away in planning the wedding, you must talk about financial planning because while love may be blind, your bank account is not. This is a necessary courtship process for a durable relationship. Whether you are entering your union as a frugal financial expert or a novice, this guide is here to help you navigate the wonderful (and occasionally turbulent) world of finances as married couples.

Although financial planning is not a one-size-fits- all solution, aligning your goals and expectations before marriage is vital, as money can spark long-lasting disputes. In 2024, a Fidelity Investments survey found that 45% of couples occasionally argue about money and that one in four couples admit money is their most formidable relationship challenge. Therefore, open communication about money and expectations from your partner will go a long way in avoiding future conflict that leads to financial friction.

In this article, we address the various legal and financial aspects couples should consider, which will impact their financial planning as a married couple, to avoid potential pitfalls.

Open Communication On Finances

Open communication within any relationship is vital to building trust and a healthy relationship. Therefore, openly communicating about finances with each other before getting married is just as important and prevents the guesswork. The communication should not only be open but sincere from start, as an attempt to shift grounds later may spell a disaster.

Setting Financial Goals

The couple's consciousness in discussing financial goals, values, and spending habits may determine whether they are on the same page regarding money matters. Each of us has a level of desire to create abundance. This desire and relationship with money will depend on each individual’s ideas and upbringing in relation to finances.

Having short and long-term financial goals can provide focus and direction regarding what to work towards as a couple. Before establishing your financial goals, it is essential to identify each person's experience with money. The following can be regarded as having a poor financial management habit – regularly spending too much, using credit to finance your lifestyle, purchasing on impulse, neglecting a budget, accumulating high-interest debt, and living beyond your means to “keep up with the Joneses”.

Addressing these issues in your relationship should form part of your short-term financial goals. Short-term financial goals can typically be achieved within a year or two. Some examples include building an emergency fund together, saving for your wedding, a vacation, or paying off debt, to name a few.

Longer-term financial goals would allow you to determine your partner's desire for financial abundance and whether you would be compatible on money. Knowing how much money is enough and what financial freedom looks like for your future spouse can assist in establishing a shared financial vision through aligned goals.

When setting your financial goals as a couple, try following the SMART principle (an acronym for Specific, Measurable, Achievable, Realistic, and Timely). Using these criteria may help increase the likelihood of achieving your long-term goals and leave less room for future marital disagreement.

Debt Management Practices

The incidence of debts can be one of the most significant contributors to financial stress within a marriage. According to the latest SARB statistics, South African households’ indebtedness in terms of their disposable income stood at 62.6% at end-December 2023.

Of this debt, c. 80% is longer-term loans, whilst the remainder is short-term credit. Thus, the likelihood that your future spouse may have debt is high. Understanding this and being prepared to tackle it is a crucial step towards financial planning. The aim should be to achieve harmony in managing credits of all sorts.

A presumed goal of getting married without having massive debt obligations weighing on the relationship is laudable. There are several steps that could assist in ensuring debts are paid off faster. These include using an accelerated payment method and, paying more than the minimum amount to create a snowball effect in reducing your debt.

This involves settling the smallest loan first whilst continuing the minimum payments on other loans. Once settled, roll on to the next smallest account as you work up to the larger balances. This allows the budget to ease out so as to appropriately build momentum to repay other debts. A different approach could be paying off more significant and higher interest-rate debt first.

In all acknowledge that being debt free is possible. It is my counsel to would be partners to plan a debt free financial goal. There is great moral and spiritual strength in living debt free, resulting not only in financial freedom but also opening up wealth accumulation potentials.

Freedom from indebtedness is a form of deliverance from servitude. The Holy book in Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.” When you are indebted to people, they control your life until you pay it back.

Income and Expenses Review

It is time to review each one’s current and potential income streams. This could include formal employment, business ventures, or investment income. Agree on forms of consolidating your finances such as a joint pulse, share or split expenses equally based on your income level.

In reaching this decision, agree on the form of union between yourselves. In relation to Lesotho customs and laws, Civil Marriage Out of Property or in community of property.

Civil law marriage in Community of property is simple and common. Under this marital regime, what is mine is yours and what is yours is mine. It means that both spouses are jointly liable for the liabilities and assets they jointly own.

The agreed arrangement should be such that it is equitable for both parties. Often, finances can influence the sense of belonging and happiness within a household. Power distribution is often determined by a spouse’s income, occupation, or even level of education. It is vital to set clear expectations for one another to avoid conflict when managing household finances.

(Contributing sources: Danny Figueira, Portfolio Management | Shaun de Villiers, Wealth Management)