Pair up over crown jewels

Newlyweds must sort their finances early to ensure happy ever-afters

IT WAS this generation’s “Grace Kelly” moment.

An American film and television star marrying her prince and becoming royalty. It’s a bit like merging the Kardashian’s with The Crown on TV.

No-one does a wedding like the Brits. The glamour, the romance, the style.

Like most young couples after their wedding, reality sets in. The hard work begins of making a relationship succeed … and getting the finances right.

Both Harry and Meghan certainly each come with their own substantial financial resources.

Meghan earned around $70,000 an episode ($700,000 a year) starring on the hit TV show Suits, plus additional income from film roles and endorsements. Her net worth is around $8 million.

Prince Harry earned about $80,000 a year during his time in the Royal Airforce, but then inherited about $20 million from Princess Diana’s estate when he turned 30 and receives an annual allowance from Prince Charles of about $1 million a year.

Harry’s net wealth is estimated at about $30 million.

So the couple, on paper, look pretty well set up. They are financially successful as individuals but, like most couples, the key is making it work smoothly.

Interestingly, they have decided not to sign a predrastically nuptial agreement on how their wealth would be distributed in the case of divorce. So they intend to make sure it works.

So what are the most important things for couples to focus on when dealing with finances?

TALK ABOUT YOUR FINANCIAL PERSONALITIES

A family budget should be completed as soon as the marriage starts. It’s a good test of whether you are both financially compatible.

There is nothing more horrifying than finding you have married a compulsive shopper if you are a spendthrift. Such incompatibility can ruin a marriage.

DON’T KEEP SECRETS

Our feeling is that if you’re together in love, you’re together in money, so we’ve always made a point of being open about finances in our relationship.

If you don’t trust your partner enough to be transparent, you have to question what you’re doing with them in the first place.

Don’t fall into the trap where one partner controls all the finances; make money matters a joint decision.

If your partner uses the old “don’t you trust me” line, respond with “don’t you care for me, because what will happen if you suddenly get hit by a bus?”

DECIDE ON JOINT ACCOUNTS … OR NOT

The benefits of joint accounts are administrative ease, lower costs, money is easier to manage, it’s simpler to budget and funds are always readily available for both partners.

On the other hand, it can be tricky if one spouse is a bigger spender, or worse budgeter, and you constantly have to keep an eye on the balance.

It might be more convenient to join your bank accounts, but if it just doesn’t feel right, then it’s not worth doing.

Joint or separate, it really doesn’t matter. So sit down together, crack a bottle of wine and have a chat about your finances and what is going to be best for your relationship and financial situations.

CALCULATE MONTHLY EXPENSES Calculate how much you need in your joint account each month to stay afloat by adding up your monthly expenses (mortgage, car, daycare, entertainment, groceries, etc). Once you have a goal amount (allowing for wiggle room) figure out how much from each of your pay will need to be deposited to meet it.

If your incomes are different, transferring the same dollar amount from each private account into the joint account isn’t always the best solution or even possible.

Look at contributing the same percentage of your earnings rather than the same amount. KEEP GOOD FINANCIAL RECORDS

Keep receipts, bank statements, credit card statements, or a journal of shared expenses and purchases to make it easier to divide things up later.

If things go pear-shaped it’s always good to have the right records to sort out any claims of one contributing more than the other.

BE CAREFUL OF JOINT DEBT Whether it be credit cards or home loans, if they are jointly held then you are also liable for your partner’s responsibilities. If they skip out without paying, you could be liable for paying their debt commitments.

HAVE REGULAR TALKS

The majority of money problems can be traced back to a lack of communication about finances. That’s why in a serious relationship it’s a good idea to regularly set aside time to talk about money together.

Even 15 minutes a month can make a difference. We don’t mean paying bills but actually talking about the big financial issues: goals and dreams.