Couples Need to Know their Financial Picture

Date: Dec. 1, 1998
Editor: D'Lyn Ford, (505) 646-6528, dlford@nmsu.edu

LAS CRUCES -- Couples who pay bills separately could have financial problems if they don't work together, said a New Mexico State University consumer education specialist.

"It is difficult to think about divorce or the death of a spouse, yet these two events do occur and can result in financial devastation for a family," said Susan Wright with NMSU's Cooperative Extension Service. "In the past, often the wife was uninformed about the family's finances, and when the husband died, she had little or no experience managing the family's money." The same often is true when a couple divorces.

Today with both husband and wife working, it may just as easily be the husband who is in the dark about money, she said. Or, each spouse may be in charge of specific areas and have little knowledge of the others. Managing the family's finances is a time-consuming and important task. Both husband and wife should have a working knowledge of their situation.

To get things in order, the couple should be able to answer the following questions: Do both spouses have current wills that take into account guardianship of minor children in the event that both die? Does each person have access to all banking and savings accounts? Is there adequate life insurance protection to ensure the maintenance of the household? Has the couple recently reviewed beneficiaries on life insurance, IRAs, CDs and pension plans? Do both have solid credit established in their own names, so they won't be caught with a bad credit rating?

Wright said each person should know about the rights to group health insurance continuation through a spouse's employer, and what pension or benefits the survivor would be entitled to from the employer or Social Security.

"Each spouse should be able to easily locate important papers, including past tax returns, deeds, insurance policies, wills and marriage and birth certificates," she added. "Also, know the location of the key to the safety deposit box and have a list of its contents."