Family Finances - A Role For Both Spouses

September 10, 2009 | by Matthew Russell	0 comments

Dad mows the yard, cooks all the meals, and handles all repair jobs. Mom does all the grocery shopping, is in charge of taxiing the kids to their 'practice du jour', and takes care of the laundry.

Division of household duties such as these sounds all too common these days. In most cases, the handling of family finances falls to a particular spouse as well. However, when it comes to the family finances, it is imperative that both spouses play a role. If not, the result could be a devastating blow when a spouse is left to pick up the pieces.

The primary risk faced by a household which has one spouse managing the family financial affairs alone is that the other spouse is left completely in the dark. Being the financial decision maker in the family, if something were to happen to you would your spouse be able to step in and manage the family wealth?

More times than not, the death of a spouse is the immediate situation people think of. But the same can be said about being a spouse of a soldier being sent half way around the world for the next year, or someone who is too ill to continue handling the family finances. Even if you expect your spouse will turn to a financial planner or advisor for help when you're not available, will your spouse even know where to look for such help much less what questions to ask?

Taking a proactive approach to bringing your spouse up to speed on your family's finances will pay huge dividends in case the time comes when you are not around to assist. Most financial advisors will agree that there are six questions your spouse needs to be able to answer regarding your family's financial picture.

1. Who Do I Need To Contact?
o This first step is the most critical. Your spouse needs to have a well prepared list drawn up for him or her listing your important contacts.

2. Where Is Everything Located?
o Your next step is to outline what assets are held and where they are held. In addition to your investments, there are other important documents which must be located.

3. How Are We Doing Financially?
o Your spouse doesn't need to know about every trade you make and every stock you may own; however, you should sit down as a couple from time to time and review your current financial picture.

4. In What Order Should I Access Our Assets?
o While some of your assets can be accessed at any time, drawing on other assets may result in unnecessary fees, penalties and taxes. Your spouse needs to know which accounts and assets to tap into first should the need arise.

5. Who Do I Turn To For Help?
o It can't hurt to assume the possibility that your spouse will be in need of a financial planner or advisor.

6. Where Can I Learn More?
o Even with a financial planner or advisor in the wings, it is important for your spouse to know where to turn to build a basic foundation of financial literacy.

Nobody wants to think about life without their spouse. Not having your financial ducks in a row, along with a financially-educated spouse who will be able to pick up the baton and run, will only make the transition that much more difficult......both emotionally and financially. Take the time to sit down together and start this indispensable process.

This article contains the opinions of the author but not necessarily the opinions of FinanceAnswers, Inc. The opinion of the author is subject to change without notice. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This article is distributed for educational puposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.Performance data shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. FinanceAnswers Inc. is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and expenses carefully before investing.

Tags	family, finances, matthew-russell, money
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