FOR IMMEDIATE RELEASE: July 28, 2008

WHAT YOU NEED TO KNOW ABOUT YOUR SPOUSE’S FINANCES

Are you and your spouse completely familiar with each other’s financial situation? In case of an unexpected emergency, it’s a good idea to have up-to-date knowledge of the details and location of each other’s financial records and documents, according to the New York State Society of CPAs. Here are some questions each spouse should be able to answer about his or her partner’s finances.

DO YOU HAVE A WILL?

Both you and your spouse should have a will that is kept in a safe place that you both can access, such as a fireproof home safe or a bank safe deposit box. The existence of a will makes it much easier to settle a deceased spouse’s financial affairs.

RETIREMENT ACCOUNTS?

What kinds of retirement coverage does your spouse have? In the case of death, it’s up to the surviving spouse to follow up with Social Security and any private retirement plans or accounts in order to receive payments due. You should know the names, account numbers and contact numbers for any pension plans for which your spouse is eligible from a former employer and for any 401(k) or individual retirement accounts. You should also know your spouse’s Social Security number and what benefits you are eligible for as the surviving spouse.

INSURANCE INFORMATION?

Does your spouse have life and health insurance? Your spouse may be covered by a life insurance plan through an employer, as well as any plan that your family has purchased. Once again, you should know the name of the insurance company, the account number and contact information for all life insurance plans. You’ll need to know the same details about health insurance plans. They will be important if you are covered under the plan as a surviving spouse. In addition, some health insurance plans require advance authorization to go to the hospital or otherwise respond to a medical emergency. You should be aware of any such requirements so that you can easily follow them if a crisis occurs.

CURRENT BANK AND CREDIT ACCOUNTS?

Are you aware of all your spouse’s credit card balances or checking or investment accounts? Many couples maintain their own accounts rather than pooling their money in a joint account. That’s a perfectly good choice, but there are many good reasons that each spouse should have some idea of the other person’s financial situation, even if each one manages his or her own money. Money is a serious cause of stress in many marriages and communication can help smooth out potential problems. If you have a thorough understanding of your family’s financial situation, you’re in a better position to create realistic budgets and plan for the future. In addition, in the event of a death or divorce, it’s better to have a well-informed understanding of your complete financial situation.

YOUR CPA CAN HELP

Many of the questions raised here address basic issues that are important to sound financial organization, such as writing a will and having up-to-date knowledge of your family’s credit, retirement and insurance details. That’s why it’s important for couples to share information and be familiar with their combined circumstances.

When you’re well-informed about financial details you’re better able to make the best decisions for your family. Your local CPA can help. Turn to him or her for advice on any of your financial needs.

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Produced in cooperation with the AICPA
©2007 The American Institute of Certified Public Accountants
PUBLIC SERVICE ANNOUNCEMENT
WHAT YOU SHOULD KNOW ABOUT YOUR SPOUSE’S FINANCES
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Do you know where your spouse’s will is located? Are you aware of the details of his or her life and health insurance plans? In case of an unexpected emergency, it’s a good idea to have up-to-date knowledge of the details and location of each other’s financial records and documents, according to the New York State Society of CPAs. For example, both of you should have wills that are kept in a safe place, such as a fireproof home safe or a bank safe deposit box. The existence of a will makes it much easier to settle a deceased spouse’s financial affairs. In case of death, it’s up to the surviving spouse to follow up with Social Security and any private retirement plans or accounts in order to receive payments due to a surviving spouse. In addition, if your spouse has life and health insurance, you should know the name of the company, the account number and contact information for all insurance plans. In the event of a death or divorce, being well-informed will enable you to make the best decisions for your family. Your local CPA can help. Turn to him or her for advice on any of your financial needs.