Before the Wedding
Financial Conversations
| Topic |
Why It Matters |
| Income & debt |
Full transparency |
| Spending habits |
Compatibility |
| Financial goals |
Alignment |
| Family obligations |
Supporting parents? |
| Children plans |
Cost implications |
The Money Talk
| Discuss |
|
| Current net worth |
Both share |
| All debts |
Be honest |
| Credit scores |
Pull reports together |
| Career plans |
Impact on income |
| Risk tolerance |
Investment style |
Pre-Marriage Checklist
| Action |
Priority |
| Share credit reports |
High |
| Discuss existing debt |
High |
| Review each other’s budget |
High |
| Discuss financial roles |
Medium |
| Talk about prenup |
If applicable |
Marriage Contract (Prenup)
When to Consider
| Situation |
|
| Significant assets |
One or both |
| Business ownership |
Protect business |
| Previous marriage |
Especially with kids |
| Expected inheritance |
Want to protect |
| Different debt levels |
One has more |
What It Can Cover
| Included |
Not Included |
| Property division |
Child custody |
| Debt responsibility |
Child support |
| Spousal support |
Illegal provisions |
| Business interests |
Unfair terms |
| Inheritance protection |
|
Making It Valid
| Requirement |
|
| In writing |
Must be |
| Signed by both |
Required |
| Each gets lawyer |
Strongly recommended |
| Full disclosure |
Financial information |
| No duress |
Voluntary |
Combining Finances
Three Approaches
| Method |
How It Works |
| Full merge |
All income to joint account |
| Partial merge |
Joint for shared, separate for personal |
| Separate |
Individual accounts, split bills |
Popular Approach: Proportional
| Example |
|
| Partner A income |
$80,000 (57%) |
| Partner B income |
$60,000 (43%) |
| Household expenses |
$5,000/month |
| Partner A contributes |
$2,850 (57%) |
| Partner B contributes |
$2,150 (43%) |
Joint Account Setup
| Use For |
|
| Household expenses |
Mortgage, utilities, groceries |
| Shared goals |
Vacation fund, savings |
| Keep separate |
Personal spending, gifts |
Tax Benefits of Marriage
Canada Doesn’t Have “Joint Filing”
| Reality |
|
| File separately |
Always |
| But linked |
Through spousal credits |
| Benefits |
Various transfers/splits |
Spousal Tax Benefits
| Benefit |
Details |
| Spousal amount |
If spouse earns <$15K |
| Pension splitting |
Up to 50% |
| Medical expenses |
Combine on one return |
| Charitable donations |
Combine for one |
| RRSP spousal contribution |
Income splitting |
RRSP Spousal Contribution
| Strategy |
|
| Higher earner |
Contributes to spouse’s RRSP |
| Uses their room |
Gets deduction |
| Spouse owns it |
Lower income at withdrawal |
| Result |
Lower overall tax |
Pension Income Splitting
| Rule |
|
| Eligible pension |
Split up to 50% |
| Age 65+ |
Most pension income qualifies |
| Under 65 |
Some pension income |
| Result |
Lower total family tax |
Update Your Documents
Name Change
| If Changing Name |
Where to Update |
| Government ID |
Passport, driver’s license |
| SIN |
Service Canada (not the number) |
| CRA |
Update records |
| Bank accounts |
All financial institutions |
| Employment |
HR, payroll |
| Professional licenses |
If applicable |
Beneficiary Updates
| Account |
Check Beneficiary |
| RRSP/TFSA |
May want spouse |
| Life insurance |
Primary beneficiary |
| Pension plan |
Spouse often automatic |
| Will |
Create or update |
Insurance Review
Update Coverage
| Type |
Action |
| Health benefits |
Add spouse, compare plans |
| Life insurance |
Review amounts |
| Auto insurance |
Multi-car discounts |
| Home insurance |
Joint coverage |
Life Insurance Needs
| Factor |
Consideration |
| Mortgage |
Would survivor afford? |
| Income replacement |
How long? |
| Debts |
To be paid off |
| Future costs |
Children, retirement |
Health Benefits Optimization
| Compare |
|
| Both plans |
What’s covered |
| Cost |
Premiums |
| Combine |
Coordinate for max benefit |
| Drop duplicate |
If same coverage |
Wills and Estate Planning
After Marriage
| Document |
Action |
| Will |
Create/update immediately |
| Power of Attorney |
Financial, name spouse |
| Healthcare directive |
Name spouse |
| Beneficiaries |
Update all accounts |
Without a Will
| Province |
Spouse Gets |
| Ontario |
First $350,000 + share |
| BC |
Spouse typically gets all |
| Alberta |
First $150,000 + share |
| Varies |
Check your province |
What to Include
| In Your Will |
|
| Executor |
Often spouse |
| Beneficiaries |
Spouse, contingent |
| Guardian |
If you have children |
| Specific gifts |
If desired |
Joint Property
Buying a Home Together
| Decision |
Options |
| Both on title |
Joint tenants (most common) |
| Ownership split |
Equal or proportional |
| Mortgage |
Both on mortgage |
Joint Tenancy vs Tenants in Common
| Joint Tenants |
Tenants in Common |
| Right of survivorship |
Can will your share |
| Equal shares |
Can be unequal |
| Married couples |
Investment partners |
Debt Strategy
Pre-Marriage Debt
| Rule |
|
| Your debt |
Usually stays yours |
| Their debt |
Usually stays theirs |
| But |
Affects household budget |
| Discussion |
How to tackle together |
Debt Payoff Approach
| Strategy |
How |
| Avalanche |
Highest interest first |
| Snowball |
Smallest balance first |
| Together |
Team approach |
Example Plan
| Debt |
Interest |
Balance |
Priority |
| Her student loan |
5% |
$20,000 |
3 |
| His credit card |
20% |
$8,000 |
1 |
| His car loan |
7% |
$15,000 |
2 |
Budgeting Together
Create Joint Budget
| Step |
Action |
| 1 |
List all income |
| 2 |
List fixed expenses |
| 3 |
List variable expenses |
| 4 |
Agree on savings rate |
| 5 |
Set personal allowances |
Sample Combined Budget
| Income |
|
| Combined net |
$9,000/month |
| Fixed Expenses |
|
| Mortgage/rent |
$2,500 |
| Utilities |
$300 |
| Insurance |
$400 |
| Phones |
$150 |
| Subtotal |
$3,350 |
| Variable |
|
| Groceries |
$700 |
| Transportation |
$500 |
| Personal (each) |
$400 |
| Entertainment |
$300 |
| Subtotal |
$1,900 |
| Savings |
|
| Emergency fund |
$500 |
| RRSP/TFSA |
$1,000 |
| Vacation |
$300 |
| Subtotal |
$1,800 |
| Remaining | $1,950 |
Financial Goals
Align on Priorities
| Goal |
Discuss |
| Emergency fund |
How much? |
| Home purchase |
When, how much? |
| Children |
Timeline, costs? |
| Retirement |
Target age, lifestyle? |
| Travel |
Priority level? |
Goal Worksheet
| Goal |
Timeline |
Amount |
Monthly Savings |
| Emergency fund |
1 year |
$20,000 |
$1,667 |
| Down payment |
3 years |
$100,000 |
$2,778 |
| Vacation |
1 year |
$5,000 |
$417 |
Banking Setup
Options
| Setup |
Accounts |
| Minimum |
1 joint chequing |
| Recommended |
Joint chequing + joint savings |
| Full |
Joint + 2 personal |
Who’s on What
| Account Type |
Whose Name |
| Joint chequing |
Both |
| Joint savings |
Both |
| Personal chequing |
Individual |
| RRSP/TFSA |
Individual (can’t be joint) |
Communication Plan
Regular Money Meetings
| Frequency |
Purpose |
| Weekly |
Quick check-in |
| Monthly |
Budget review |
| Quarterly |
Goal progress |
| Annually |
Big picture |
Rules for Money Talks
| Guideline |
|
| Scheduled time |
Not when stressed |
| No blame |
Problem-solve together |
| Spending threshold |
Agree on limit to discuss |
| Goals focus |
What you’re working toward |