5 Financial Miscues in the Name of Love
Dragging in family members
If it isn't advisable for one half of a couple to get tied into the other's loans and bills, it is even more dangerous to bring family members into the picture. No matter how well a partner gets along with the potential in-laws, introducing money to the equation is an invitation for trouble.
Even if they offer to help out with that needed loan, either by directly lending the money or co-signing, the help may not be worth the hard feelings that will haunt you if anything goes wrong with a repayment plan.
Leases -- for an apartment, car or business space -- are also fraught with hazard if a partner or their family is overly trusting in providing their John Hancock.
Moving too fast
The American Dream has many couples dreaming of buying a first home and perhaps even starting a family. But realizing such plans can be too much too soon.
Love can fade as fast as it blooms. From teenagers to senior citizens, every new relationship feels like a sure thing -- until it isn't. It may be a difficult conversation to have amid fast-beating hearts and fluttering eyelashes, but couples need to discuss what will happen if their financial arrangements outlast their relationship. That conversation may not be put to paper as a prenuptial agreement, but certain, very specific items need to be agreed to verbally and, if possible, in writing. How will joint credit cards be treated? What is the plan for discharging jointly acquired debt? Who gets what physical assets? How will insurance policies be updated or investment portfolios unmingled? Hashing out such details may not make for a fun date, but in the long run having those conversations may spare grief and uncertainty and, at the very least, make a split far less acrimonious or litigious. -- Written by Joe Mont in Boston.
>To contact the writer of this article, click here: Joe Mont. >To follow the writer on Twitter, go to http://twitter.com/josephmont. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV