Category Archives: Marriage & Divorce

An expert’s guide on how to save for a wedding – Evening Standard

  Marriage & Divorce

Weddings are an expensive venture. In the UK it costs, on average, £30,355 to marry the person you love.

Perhaps Instagram is at fault, with social media being a driving factor for many millennials vying to live picture-perfect lives and thus have picture-perfect weddings.

Or perhaps it’s just rising vendor charges as the wedding industry continues to rake in £10 billion per year in the UK alone.

Yet, whatever the cause, unless you elope or head to a registry office, putting a ring on it will likely cost a similar amount to a house deposit .

So how can you save for your big day? We spoke to two financial experts who revealed their top tips below.

Start saving early

“Unless you have lots of spare cash, saving for a wedding does take work,” Clare Francis, Director of Savings and Investments at Barclays Smart Investor, told the Standard.

“To make things more manageable, start making simple changes early, from forgoing your morning coffee, to cancelling a subscription you rarely use. This money will collectively build up, giving you a healthy boost towards your dream wedding. Little and often is a much more enjoyable way to reach your savings goals rather than sudden sacrifices.”

Michelle Pearce-Burke, CIO and Co-founder of Wealthify, agreed: “If you really like planning things ahead, you could choose to invest and let your money grow for your big day. Investing should be a long-term strategy, but if you know you want to get married one day and if you’re willing to take some risk, you could start investing before you’re even engaged and hopefully bring the wedding of your dreams to life – the earlier you start, the more time your money will have to potentially grow.”

Figure out a budget

Making and sticking to your budget is one of the most important things when it comes to planning your wedding. Not everyone can afford to have two custom-made Dior dresses like Instagram influencer Chiara Ferragni – you need to be realistic about what you can pay for.

Francis noted: “Have a clear idea of what your budget is and don’t allow yourself to be persuaded outside it. From invitations, to balloons to a caterer, know what you want to spend and only shop around within your budget so you don’t find yourself in the path of temptation that you can’t fund.”

Have a savings target

Francis explained: “Once you’ve worked out what you need to spend on your wedding, put in place a monthly savings target. This will give you focus, helping you say no to those regular treats you could do without and getting you to your goals.

“You can also set up a dedicated wedding savings account. Not only will this take the money out of your everyday spending account so you are less likely to dip into it, but you will get the added bonus of some extra interest on your savings.”

To help keep you on your savings path, try one of these money apps.

While summer weddings can be dreamy, the UK summer generally consists of a two-week heatwave and then back to dreary grey skies until the rain kicks off again come autumn. So there is no guarantee your summer wedding will produce a sunny day.

“Think smart and don’t go with the flow,” advises Pearce-Burke. “The cost of venues can vary enormously depending on dates – for example, a wedding on a Saturday during the summer will cost substantially more than on a Friday during winter.”

Plus, you’ll likely be spending more of the day indoors and can still step outside for those essential golden-hour shots.

Go second hand

Buying second-hand items for your wedding doesn’t have to mean rushing down to the nearest Red Cross charity shop (although that’s not a bad idea). Many brides sell their new wares online after their wedding, which can be scooped up for a fraction of the price.

Francis said: “Look online for people selling things from their own wedding. Whatever your theme, and whether it’s the dress, vintage crockery or tea light holders you’re looking for, chances are you’ll find some bargains.”

Saving for your wedding doesn’t have to be a monumental task – and you can easily save for a wedding and house deposit simultaneously, it’s all about where you allocate your money and setting a target.

While your wedding may not be as extravagant as a Kardashian’s (and thank goodness for that), setting a budget and deciding on the things that hold more value to you can be a great place to start.

To help you plan your big day, try one of these useful wedding apps.

These 3 Tips Will Help You Manage Your Budget During Your Marriage – Thrive Global

  Marriage & Divorce

The basic phenomenon of life is to love and to be loved. We spend a majority of our life looking for the right partner and to how to spend a joyous and lovable life. The most efficient way of securing one’s love with the other is; marriage. 

Marriage is a beautiful concept of our lives. When two people who love each other more than anything become as one is probably the happiest time of their lives. 

For being such a joyous day, everyone wants it to be the most memorable and beautiful day of their lives and they tend to spend a lot of money on their weddings, which basically disturbs their whole budget. 

Following are the 3 most useful tips that can be used (and should be used) which can help love birds by being easy on their budgets and having a great wedding: 

  1. At-Home Ceremony: 

What could be better than having a wedding at your home instead of booking chapels or halls? Wouldn’t it be amazing to start your new life at somewhere you’re cozy and comfortable? You can have any kind of decoration you want in your house and guess what? It is super friendly with your budget. T will cost you approximately 50% less than any of the halls you look for and is easy for all your relatives and friends to reach. And everyone will have a great time together in a place they are used to visit. 

  1. Frugal Wedding Dresses: 

Who says it is necessary to buy branded and expensive wedding dresses for bridesmaid or other people? Why not buy something economical, and not cheap, and still slay the wedding? One of the most effective budget friendly tip for weddings is to look for something to wear that are not so expensive and not so “cheap” looking. There are many websites and companies available in the country that provide people with reasonable priced wedding dresses.  

Another benefit of these dresses is that they are always in trend and up-to-date. 

  1. Cater Yourself: 

Why waste so much of your money on hiring a caterer when you can do it by yourself? There is always a relative in a family that is an expert chef and who cooks beautiful and delicious food. What would be better is to talk to them and tell them that you guys are having a budget friendly wedding ceremony and would love their help. Gather up some cousins (usually the little ones do it best) and address them to wait the tables and even give each of them 5 dollars. 

Marriage is a day of joy and love. And it should never be at loss because of how much money one spends or what kind of ceremony they have. It is a memorable and important day for the bride and groom and the ceremony should be exactly the way they wish for and not to exaggerated for other people. 

5 tips to protect your finances from divorce – Yahoo7 News

  Marriage & Divorce

(Photo: Getty)

Talking about money with your partner is hard enough – in fact, nearly half of Aussies avoid the matter altogether.

Couple that with the fact that research has shown that money does, in fact, matter in a relationship, and you have yourself a minefield of a conversation to navigate through.

Remaining in a long-term relationship requires commitment and trust – and the last thing on your mind is a question that implies the total opposite: “What if we break up?”

But failing to adequately prepare for the worst can have serious financial consequences when things take a sour turn.

In Michael Tiyce’s experience as a divorce lawyer spanning more than two decades, he’s seen too many of his clients lose assets that they’ve worked hard for as a result of divorce.

“Unfortunately, the majority of our clients come to us for help once a situation has occurred and it’s often too late to make preparations,” he said.

While it’s important to have faith in a relationship, it’s also important to plan ahead for the future and secure protections for your finances. Here are five tips from Tiyce and Sydney-based financial adviser James Gerrard on how to divorce-proof your finances:

1. Organise a prenup

In the event that the relationship goes bottom-up, who gets what? There’s every reason to want to evade dealing with this awful eventuality, but prenups are legal agreements can help couples establish how they plan to agree to settle matters such as assets, debts and custody.

“Most people are unaware that couples who are de facto, married and in same sex relationship are now able to organise prenuptial agreements before, during and after separation,” Tiyce pointed out.

“Being prepared and having a prenup in place can give you and your partner peace of mind that your finances are protected.”

2. Alternatively, set up a family trust structure

According to Gerrard, this structure is more discreet in nature yet still allows for the protection of assets in a relationship breakdown. One of his clients, who has made use of this structure by having her family as controlling trustees and majority beneficiaries, will also acquire property and shares to increase the protection of her assets should her relationship break down.

But make sure you know the ins and outs of it, Gerrard told Yahoo Finance. “There are some issues to consider when using a trust, such as no land tax threshold and no negative gearing in a trust, so legal and accounting advice should be sought.”

3. Write your will

Protecting your finances don’t just mean protecting your own, but protecting your next in kin and the ones you love.

“Most people shudder at the thought of leaving debt to partners and children and likewise, worry about confusion over who is entitled to what,” Tiyce said.

By creating a will, you’ll be setting out your intentions for your finances and sentimental items and erase any possibility for ambiguity or argument.

4. Know what insurance you have

A surprising number of clients aren’t fully clear on what protection they have for their various assets such as home, contents and life insurance, Tiyce observed.

“If you live in a fire or flood prone location, it’s important to seek out the right insurance.”

It’s also a good idea to understand what insurance you have in your superannuation – and don’t fall for the myth that insurance in your super is cheaper.

5. Understand de facto laws

It’s important to keep in mind you don’t have to be married to your partner in order to set up legal arrangements to sort your shared assets, Gerrard pointed out.

“Understanding state based de facto laws that apply in your state is crucial to make sure you know when your assets can be exposed to a financial settlement,” he told Yahoo Finance.

For example, in NSW, de facto laws apply after two years of being in a domestic relationship, meaning a financial claim can be made on either side if the relationship goes bust.

“People can be caught off-guard by de facto laws as it’s relatively common that two people in a relationship will live together and maintain separate finances.

“However, they do not realise they may have to split all of their assets with their partner if they split after two years.”

Gerrard advises speaking to partners about prenups, trusts or living arrangements in the period before a de facto status for those who are concerned about protecting their assets.

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Now read: How much you earn DOES matter in a relationship

Now read: 7 tips for talking to your partner about money

Now read: How much should you really spend on a diamond ring?

15 Key Tax Tips For 2018 – Credit.com News

  Marriage & Divorce

Tax laws aren’t what they used to be thanks to the Tax Cuts and Jobs Act (TCJA) passed in December 2017. You don’t need to sweat the new laws though. Most happen automatically. You’re biggest worry is to ensure you don’t try and take the same deductions you took last year—if you itemize—and to understand how you might be impacted. To that end, we offer 15 tax tips to help you navigate the new tax laws and make filing on April 15, 2019, as painless as possible.

The new tax bill polarized Americans, but it’s done now. What’s next is to understand what’s changed, what you need to know about how those changes affect you and file your taxes. Here are 15 tax tips to get you through that hurdle.

Tip 1. Find out if your tax bracket changed.

Under the new tax laws, income tax brackets have changed. A tax bracket is the range of adjusted gross income (AGI) you fall into. AGI is the money you actually take home and have available to use—your income minus health insurance premiums, retirement account contributions, and so on. The tax bracket you fall into determines the percentage of your AGI that you pay in taxes. Our article on tax brackets outlines brackets and what they are.

If you find yourself in a different tax bracket because of the new laws, there’s nothing you can do about it for the taxes you’ll pay for 2018. However, if you find your bracket has changed so you’ll end up paying more taxes in 2020, consider changing your withholding. That way, Uncle Sam will keep more of your money during the year, so your tax bill, come 2020, won’t be as high.

Tip 2. The new bigger standard deduction might lower your tax bill

The standard deduction is a dollar amount determined by your filing status— married, single, married but filing individually, head of household or widower with a child. The amount gets subtracted from your AGI to decide your actual taxable income. For everyone, the standard deduction pretty much doubled for the 2018 tax year over the previous year.

Filing Status 2017 Standard Deduction 2018 Standard Deduction
Single $6,350 $12,000
Married Filing Jointly $12,700 $24,000
Married Filing Separately $6,350 $12,000
Head of Household $9,350 $18,000
Qualifying Widow(er) with a Dependent Child $12,700 $24,000

If you usually claim the standard deduction and don’t itemize, this change should help reduce your tax bill.

Bonus tips

  • This change makes it more important to weigh whether itemizing is more advantageous. With the higher standard deduction, more of us may come out ahead by simply taking the standard deduction.
  • If you’re married filing separately and your spouse itemizes deductions, you have to too.

Tip 3. Don’t plan on the normal personal exemption on top of your bigger standard exemption

The personal exemption, which was $4,050, in the past has been eliminated. So you won’t get it in addition to your larger standard exemption. Even so, the larger standard exemption still exceeds the previous standard and personal exemptions combined—so you come out ahead.

Tip 4. To itemize, your itemized deductions have to exceed your standard deduction

Youch. If you’re used to itemizing, this one might bite. What it means is that if you file under the single filing status, you have to have itemized deductions that exceed $12,000 before you can itemize and save any money.

Tip 5. If you do itemize, your medical deductions may add up to more

If you had high medical costs last year, it may make itemizing more beneficial—assuming you have enough to deduct. Taxpayers used to have to spend 10% of their adjusted gross incomes on qualifying medical expenses to take a deduction. The new tax law lowers that percentage to 7.5%. That means you can deduct more of your medical bills if you decide to—and can—itemize your deductions when you file your 2018 taxes.

Tip 6. Don’t worry if you didn’t have health insurance in 2018.

Under the Affordable Care Act, if you didn’t have consistent medical-insurance in 2017, you had to pay a penalty at tax time. The new tax law did away with that penalty.

Tip 7. Your kids get twice the credit.

The Child Tax Credit increased and more of the credit is refundable. This credit lets you reduce your federal income tax up to $2,000 per qualifying child. The credit was previously up to $1,000. A tax credit reduces your tax bill directly as opposed to a deduction that reduces your AGI. So a $2,000 credit, reduces the amount of tax you owe by $2,000.  You can qualify for the credit if you’ve earned just $2,500 in income for the year. Learn more about the changes to this credit.

Tip 8. If you itemize, charitable contributions amount to more.

In years past, the maximum donation deduction for charitable donations was 50% of your AGI. Under the new tax law, you can now deduct up to 60% of your AGI for charitable donations. The key here is that you can benefit if you can itemize.

Tip 9. Deduct your mortgage interest if you are buying a home and can itemize.

If you are buying a home and took out your loan before December 15, 2017, you can deduct the interest you pay on that loan from your taxes—if you can itemize. Deductible interest is capped for loans up to $750,000.

Tip 10. If you moved, you can’t deduct your costs anymore.

Under previous tax law, if you had to relocate for a new job, you could deduct any related expenses, such as movers, gas, and more. This deduction is no longer be available now though. So, even if you itemized in the past and took a deduction for moving, you can’t this time around.

Tip 11. You may save if you’re married filing jointly.

The marriage penalty no longer exists for couples who make less than $60,000. What that means is that if you both have the same income and file jointly, you can now file with your combined total income and you won’t likely end up in a higher tax bracket which will lower the total taxes you owe. With the 2017 tax brackets, that were smaller than the new brackets, the marriage penalty drove many couples filing jointly into higher tax brackets and therefore a higher tax bill.

And the marriage bonus still exists. With the wider brackets for 2018, if you and your space make different incomes, filing jointly with both your incomes won’t likely push you into a higher tax bracket or a higher tax bill either.

Tip 12. Don’t try and deduct alimony this year.

The TCJA eliminates the alimony deduction. With the deduction, ex-spouses paying alimony could deduct that payment from their taxes and lower their taxable. Ex-spouses receiving alimony were taxed on alimony received as income, but at their own tax bracket and not the ex-spouses. Both of these provisions have been eliminated. Ex-spouses can no longer deduct alimony payments. But, ex-spouses receiving alimony, don’t have to claim them as income either.

Tip 13. If you’re not so wealthy, taxes won’t hurt any less or more.

While most peoples’ tax brackets have changed, those in the lowest income bracket aren’t affected much at all. So, if you fall into this group, your taxes will be about the same.

If you are wealthy, accept that taxes won’t hurt as much. We know this one will be a tough tip to take, but you’ll make due. The skinny, because the tax brackets are now different, for those in the top tax brackets taxes are now lower.

Tip 14. If you invest, you may get to keep more for yourself.

The new tax law decreases capital gains taxes for all but those in the highest income brackets. The decrease is a result of a shift in how the capital gains income thresholds line up to the new tax brackets. They actually don’t line up and instead line up with the previous brackets, which means you can make more income and pay less in capital gains than you would previously. So, if you’re someone who benefits from capital gains—and many Americans do—then you’ll keep more of your investment for yourself.

Tip 15. Consider a tax preparation service to help ensure you get it right this year.

With all the new changes in effect this filing season, as a taxpayer, you may find it more complicated than ever to traverse the tricky world of tax policy. That is when the services of a professional tax preparation service can come in handy. If you find yourself facing a complex tax return or you are unsure of your tax situation, a professional can better outline what can happen if there are mistakes. They can also go through your tax documents to make sure you are taking full advantage of every credit and deduction available so you get the maximum tax refund.

Need money fast and can’t wait for your refund? Some services offer 0% interest tax refund advance loans. Learn more about What Is a Tax Refund Advance Loan?

Bonus tip

Tax time is a great time to check your three credit reports, which you do free one a year. It’s also a good time to start tracking your credit more regularly, with Credit.com’s free Credit Report Card and Experian credit score, which is updated every 14 days.

This article was last published March 20, 2018, and has since been updated.

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