Preparing financially for the unexpected

A medical situation I recently experienced made me realize that if something unexpected and dire happened to me, my husband wouldn’t have a clue how to begin unraveling our finances.

It’s not that I’m keeping things from him. He has just never shown any interest in our financial affairs and has left the reins in my hands for our 31-year marriage. This could be a terrible problem for him and our loved ones if I’m not here some day or become incapacitated.

Preparing for the unexpected together

And if it sounds like your marriage — no matter which spouse couldn’t care less about money matters — it’s essential that you both take steps to prepare for the worst as soon as possible.

In the past, it might have been easier for my husband to figure our finances out. Years ago, all he’d have to do was go to the mailbox to see our bank, investment and credit card statements. But like many households, I’ve turned all our banking and billing pay online. Problem is: While most of the world is connected, my husband is one of the estimated 13% of Americans who doesn’t regularly use the internet.

It turns out our situation isn’t at all uncommon.

A disaster for some couples

“This is not even a generational thing,” said Mike Pruitt, a Certified Financial Planner with MBE Wealth Management in Madison, Wis. “There is usually one spouse in a relationship that is not interested in the finances.”

It can be, however, disastrous for the spouse or partner who isn’t in the loop should the other spouse or partner die or become incapacitated.

Doris Belland, a financial literary educator and the author of “Protect Your Purse,” was only 32 when her husband died. They both handled the finances of their respective businesses, but he took care of the investments. When he died, she realized she was unprepared to deal with the finances and the $400,000 of debt on his business because she didn’t know much about the family investments.

Belland wishes now that she had discussed more about money with her husband. “Having these types of discussions is not being morose,” said Belland. “It’s about your protection and when you are prepared, it leads to a more joyful life.”

Advice for couples mismatched about money

Here are some tips for couples where one spouse is begging off dealing with finances:

Prepare a valid will. Belland’s husband didn’t have one, which greatly complicated matters. While preparing a will, you also need to get important papers in order, said Rick Kollauf, director of business advisory at BMO Wealth Management in Milwaukee.

Make sure each of you knows where all your key documents are located. This includes marriage licenses, birth certificates, passports, life insurance policies, and passwords to all your financial accounts. Be certain, too, that both partners have access.

In addition, both spouses should have a list of the household’s financial advisers: attorneys, insurance agents, financial planners and bankers.

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