Mason, Griffin, & Pierson, P.C. Timely Information

While most engaged couples may be primarily concerned about arranging the florist, or preparing the guest list, people entering into marriage should also discuss financial arrangements according to several local financial experts.

"The first step is to have the two people communicate," said Mike Delehanty, a certified financial planner in Princeton. "Finances are often a big reason why marriages fall aprt. If the husband and wife to be aren't talking with each other, then that has real potential for problems."

Once the channels of communication have been opened, the primary considetration is to develop a united vision and establish clear financial goals.

"I try to make sure that I have two people who are on the same page," said Mr. Delehanty. "Each person within the couple may have different ideas about what they want to do financially."

According to Mr. Delehanty, a number of factors will affect the development of a cohesive financial plan including the age of the couple, the desite to provide children with a college education, the responsibility to care for one's parents, and the need to increase retirement savings.

Additional considerations include how a person's tax status is affected by marriage, what kind of life insurance should be retained, and how to update financial portfolios.

"I like to get an idea of who you are, where you are financially, and where you want to go," stated Mr. Delehanty. "Then I go about implementing those goals."

Over the course of a marriage, the couiple may want to consider conducting periodic financial reviews. "Not enough people do an annual financial review," said Mr. Delehanty. "Just how a doctor recommends an annual check-up, people should see a certified financial planner once a year."

Prenuptial Agreements

An additional factor for some couples to consider is whether or not a prenuptial agreement is suitable to their situation.

"I would encourage anyone going into a marriage with real assets to have a prenuptial agreement drawn up," said George Fraser, an associate with the family practice group at Mason, Griffin & Pierson in Princeton.

"The thing that I'm seeing a lot is that many people are not getting married in their 20s," she added. "Many more people getting married are in their 30s and they have children and established assets. Some people want to protect themselves and mitigate their damages if or when something happens."

While some couiples would finsd such an agreement innapropriate, others find it helpful.

"About half the people I see come in and talk about and decide for romantic reasons that they could never ask their fiancee to do that," said Ms. Fraser. "But the cost of litigating a divorce case is very expensive, and this allows people to work out the details fo the divorce before it gets there."

Acdording to Ms. Fraser, thae process of considering a prenuptial agreement is a good activity for a couple considering marriage.

"Thinkling about something like this is a good thing anyway because it brings up other issues that people may not think about," she stated.

"Most couples are not taught to consider questions like, Where do we put our money? Will we have joint accounts? How are we going to spend our money?"

Those considering a prenuptial agreement, however, should be forewarned that state law requires that in order for a prenuptial agreement to be valid, the other party needs to have plenty of time to consider the agreement.

"If someone is thinking about having one done," stated Ms. Fraser, "they should sit down with an attorney well in advance of the wedding."

Wills and Powers

Entering into a marriage may also be the time to consider other financial arrangements, such as establishing a power of attorney and drawing up a will.

"Everybody should have a living will, a power of attorney, and a last will and testament," said Valerie Howe, a partner at Mason, Griffin & Pierson.

Ms. Howe stated that the living will established the conditions of care should someone become incapacitated, the last will and testamant clarifies the distribution of assets in the event of death, and the power of attorney enables an individual to act on someone's behalf in all financial matters.

While most people, according to Ms. Howe, only consider such legal documentation after having children, each couple could benefit from making these decisions early in a marriage.

"You have to put a lot of thought into these decisions," said Ms. Howe. "Sometimes, marriage is the trigger that makes peolple think about these important issues."