Financial Planning In and Out of Love (Part 2)
Financial Planning In and Out of Love (Part 1)
Financial Planning Aspects of Relationships
Capital acquisition, gross income, the cash needs of dependents, and prevailing tax legislation are important financial planning matters that deserve expert consultation and careful review. One way is to do this when you are back at work after your annual summer break, so that things are in place before the festive season starts. The other option is to have a great time first, and use the long January nights to agonize over the financial planning aspects of relationships after the partying has died down.
Nothing is more demeaning than having to move out of a much-loved home, so structure mortgages against stable and adequate sources of income. You must know by now that banks have strong hearts when it comes to collecting their Equated Monthly Installments, but do not lose sight of the fact that mortgage payments cannot be deducted from income of a partner or a spouse, as far as the IRS is concerned.
Husbands, wives, and lovers have their own financial planning rights, but it pays to keep in mind that the IRS is most active in disputing Innocent Spouse claims. The vast majority of EITC beneficiaries lack financial planning skills, and believe they cannot afford financial planners to boot. It is a good practice to ask a financial planner heart-rending ‘what if’ questions, and to plan for your own financial security, as well as that of the people you love now, should relationships change during the course of the next tax year. Hope for the best but be prepared for the worst we say! It is cynical to consider marriage for pecuniary advantages, but it is normal to move from individual to joint tax accounts if one member of a couple does much better in income terms than the other.
Dangers of Hidden Agendas in Financial Planning
Romantic notions of leaving some things unsaid should have no places in financial planning! Pre-nuptial agreements may seem crass to some, but the reality is that everyone should place their financial planning cards on the table even as the dating becomes serious, regular, and heavy. Never move in, except without clearly one-night stands in mind, unless your financial planner has read the fine print of the lease, mortgage, or title deed. Perhaps the age of motels was better! Never drop any guard at casual social gatherings, especially if there are seductive combinations of starry skies, balmy weather, and plenty of substances to abuse, because that is exactly where you could pick up a virus from a person from another tax bracket. It is a good idea to keep a copy of your last tax return handy, with details of your stock portfolio, so that there is no awkwardness in asking for these modern courtesies in your turn.
Are you an Innocent Spouse, or do you worry about becoming one? Does a home mortgage or EITC benefits force you to stay in an unsatisfactory relationship? Do you worry about the financial planning implications of moving on in your personal life, or are you an economically persecuted homosexual? Our community brooks no discrimination on these grounds: you can join now and perhaps find a financial soul mate. Join our forum now and make your first post soon!