Marital Wealth
From WeDoMarriage.org - World's First Couple Marriage Contract Wiki
Personal financial topics are often the most difficult for people to discuss. But since financial issues often cause significant issues in marriages, it appears sensible to try to reach agreement on your finances before your wedding. A good place to start is for each spurse-to-be to share their details of their current financial position.
The Store of Wealth
At WeDoMarriage.com you can find a range of books that can help couples put the finance into romance'
Your financial values
Your money values are what you feel is important about money and what you believe money is worth spending it on. Knowing your and your future spouse's s money values will help you better understand what factors influence your spending and savings habits.
Unresolved differences in money values can cause conflict and add stress to relationships. An important first step in making financial plans together is discovering what each person in the relationship thinks about money: where it comes from, what's it for, and how it's best used.
About the Colour of Money
The Colour of Money is a 50-item checklist designed to help you identify your money values. It was created by family economists Dr Dena Wise and Celvia Stovall for the Tennessee Saves project at the University of Tennessee Extension. The Tennessee Saves project is part of America Saves, a nationwide campaign that uses social marketing to encourage citizens to build and protect wealth, plan for a secure financial future, pay down debt, and protect against financial fraud.
Download the six-page Colour of Money Checksheet
Completing the Colour of Money Checksheet
Find some quiet time with your future spouse when each of you can work through your copy of the 50-question checksheet. You can see that there are five sections, coloured Yellow, Green, Red, Blue and Pink. As you complete each section, total up the number of statements you've ticked. Finally, copy each section's total to the last page. The colour with the highest value represents your dominant money colour. A full description of each money type is provided with the checklist.
Remember that money is a resource to assist you in reaching goals and getting the things you need and want. If your values or how you use money prevents you from reaching financial goals, you may need to rethink your money habits.
Your Net Worth Statement
Whatever your financial dreams for the future, you need to consider where you are right now by creating a combined net worth statement. Your net worth is simply the sum of all your assets (what you own), less the sum of all your liabilities (what you owe). Knowing your net worth gives you a starting point to track your progress from year to year.
Totalling your assets
Start by listing your largest assets. This includes any property you own in full or part, and any vehicles. Estimate their current market value as accurately as you can. Inflating the value of large assets may look good on paper, but it will not paint an accurate picture of your net worth.
Next, you'll want to gather your latest financial statements for any current and savings accounts, cash, and other investments such as retirement accounts. Finally, consider listing personal items that may be of value. This could include jewellery, coin collections, computers, musical instruments and so on. A good rule is to itemise everything worth $500 or more.
Now, add the value of all your assets together to find your total asset value.
Totalling your liabilities
It is time to look at your liabilities. Again, start with the major outstanding liabilities. This might include the balance on your mortgage, or an outstanding car loan. Next, list all of your personal liabilities such as credit cards, student loans, or any other debt you may owe. Now, add up all of your liabilities to find the total.
Calculating your current net worth
Finally, subtract your total liabilities from the total assets. The result is your current net worth. Remember that this is just a starting point, and something to compare against in the future. As time goes by you can use your net worth to determine if you are making progress or getting further behind.
Combining your net worth
Your net worth as a couple is simply the sum of your two personal net worth statements. It illustrates what assets and liabilities each of you are bringing to your marriage.
Your Income and Expenses
Knowing what earning and spending patterns you and your partner are bringing to your marriage.
Marital Wealth and your Marriage Contract
| 5.5.1 | [Romeo] and [Juliet] have each fully and completely disclosed to each other their current financial position including all assets and liabilities. |
| 5.5.1 | [Romeo] and [Juliet] have each attached a balance sheet to this agreement indicating his/her current assets and liabilities with the understanding that this balance sheet reflects his/her current financial status to the best of his/her ability. |
