Spouses need to share information
Financial Snapshot
By Jon Kagan, CFP® Gulf Winds Wealth Strategies

Every spousal financial relationship is unique. Over time couples develop their own systems for handling financial matters. Sometimes it is one partner's responsibility to manage all finances, sometimes its the other's, and sometimes its a combination. Whatever the situation, certain information should be shared.

Couples should consider the following:

Retirement plans: Both partners should have current knowledge of pension plans, 401(k) accounts, IRAs and Social Security benefits.

Credit card documents: Mutual awareness of credit card debt amounts will help with developing a family's overall financial plan. It's wise to know where to find account numbers in case one loses his or her wallet and needs to help cancel the card.

Power of attorney: It is a good idea to have power of attorney on any individually owned assets in case one becomes ill or unavailable. Power of attorney can be limited to specific functions for a certain period, such as selling stocks or withdrawing money while traveling. A broad document that authorizes each partner to handle almost any situation in the other's absence is also a consideration.

Wills, trusts and life insurance: It's especially important to share information about wills, trusts and life insurance if either has been married before. There could be restrictions on how some assets may be used and beneficiaries left unchanged by mistake. Make sure each partner knows where to find wills.

Health insurance policies: Most insurance companies will cover care administered in the first 24 to 48 hours of a medical emergency. If each partner is covered under a different insurance plan, both should be familiarized with the requirement "hoops" they may have to jump through.

Business loans: If one spouse owns a business or is a partner in a professional firm, both should know about any personally guaranteed loans. It is critical to be aware of liabilities since household assets can be hit if the business can't repay the loan.

While many don't necessarily need to know everything about their spouse's finances, maintaining a working knowledge of the above points can help maintain proper, balanced control over a family's financial affairs.