Why Both Spouses Should Know the Family Financial Situation

In a recent study, it was surprising to find that only 28% of all couples surveyed were confident that either spouse could handle the family finances alone if there was a death, an accident leaving one spouse disabled or a divorce. Obviously, no one likes the idea of something so unnerving, but it’s important for both people to have an understanding of the family finances. The Wall Street Journal article, “What Each Spouse Should Know About Finances,” gives a helpful list of tips so that each partner is able to manage their financial affairs alone…if they have to.

Creating an inventory of assets is the first step to help you make informed decisions if something unexpected happens. Make a list of financial accounts, 401(k)s and insurance policies, including information on where they are held and noting the beneficiary listed for each. It is also recommended to itemize physical assets, including houses, cars or boats. Atypical assets are often forgotten, such as airline miles or valuable collectables, but these assets can become helpful forms of financial help if needed.

Having your assets organized and discussing options before something sudden happens will prepare you to make smart decisions during difficult times. For more information or for help on how to create an inventory of your assets, contact me, John Willis.  I can give you the peace of mind you’re looking for. Give IRS All Star a call at 877-254-4254 for all of your tax law questions. http://www.irsallstar.com/