What You Need to Know About Your
Spouse's Finances
Are you and your spouse completely familiar with
each other’s financial situation? In case of an unexpected emergency, it’s a
good idea to have up-to-date knowledge of the details and location of each
other’s financial records and documents, according to the Iowa Society of
Certified Public Accountants. Here are some questions each spouse should be
able to answer about his or her partner’s finances.
Do you have a will?
Both you and your spouse should have a will that is kept in a safe place
that you both can access, such as a fireproof home safe or a bank safe
deposit box. The existence of a will makes it much easier to settle a
deceased spouse’s financial affairs.
Retirement accounts?
What kinds of retirement coverage does your spouse have? In the case of
death, it’s up to the surviving spouse to follow up with Social Security and
any private retirement plans or accounts, in order to receive payments due.
You should know the names, account numbers, and contact numbers for any
pension plans for which your spouse is eligible from a former employer and
for any 401(k) or individual retirement accounts. You should also know your
spouse’s Social Security number and what benefits you are eligible for as
the surviving spouse.
Insurance information?
Does your spouse have life and health insurance? Your spouse may be
covered by a life insurance plan through an employer, as well as any plan
that your family has purchased. Once again, you should know the name of the
insurance company, the account number, and contact information for all life
insurance plans. You’ll need to know the same details about health insurance
plans. They will be important if you are covered under the plan as a
surviving spouse. In addition, some health insurance plans require advance
authorization to go to the hospital, or otherwise respond to a medical
emergency. You should be aware of any such requirements so that you can
easily follow them if a crisis occurs.
Current bank and credit accounts?
Are you aware of all your spouse’s credit card balances or checking or
investment accounts? Many couples maintain their own accounts rather than
pooling their money in a joint account. That’s a perfectly good choice, but
there are many good reasons that each spouse should have some idea of the
other person’s financial situation, even if each one manages his or her own
money. Money is a serious cause of stress in many marriages and
communication can help smooth out potential problems. If you have a thorough
understanding of your family’s financial situation, you’re in a better
position to create realistic budgets and plan for the future. In addition,
in the event of a death or divorce, it’s better to have a well-informed
understanding of your complete financial situation.
Your CPA can help
Many of the questions raised here address basic issues that are important to
sound financial organization, such as writing a will and having up-to-date
knowledge of your family’s credit, retirement, and insurance details. That’s
why it’s important for couples to share information and be familiar with
their combined circumstances.
When you’re well-informed about financial details you’re better able to make
the best decisions for your family. Your local CPA can help. Turn to him or
her for advice on any of your financial needs. To access “Find a CPA” on the web, go to
www.findanIowaCPA.com.
