Life's biggest moments—marriage, having children, career changes, divorce—bring both joy and financial complexity. Planning ahead helps you navigate these transitions while protecting your financial foundation.
Getting Married
Marriage merges two financial lives. Before and after the wedding, address:
Pre-Marriage Discussions
- Debts: Disclose all debts—student loans, credit cards, car loans
- Credit scores: Understand each other's creditworthiness
- Financial values: Discuss spending habits, saving priorities, and money attitudes
- Prenuptial agreement: Consider if significant assets or debts exist
Post-Marriage Actions
- Decide on combined vs. separate finances (or hybrid)
- Update beneficiaries on all accounts
- Review insurance needs and options
- Adjust tax withholding for new filing status
- Create or update your budget together
The Social Security Administration recommends updating your name if changed—this affects tax returns and retirement benefits.
Having Children
Children bring immense joy and significant expenses. According to the USDA, raising a child to age 18 costs over $230,000 on average—and that doesn't include college.
Before Baby Arrives
- Build your emergency fund to 6+ months
- Review health insurance for maternity coverage and adding dependents
- Research childcare costs in your area
- Understand parental leave policies
- Start a baby fund for immediate expenses
After Baby Arrives
- Add baby to health insurance within 30 days
- Apply for Social Security number
- Update life insurance and disability coverage
- Create or update wills and designate guardians
- Consider opening a 529 education savings account
- Adjust your budget for new expenses
Buying a Home
As detailed in our home buying guide, this major purchase requires:
- Strong credit score
- Saved down payment and closing costs
- Stable income history
- Understanding of ongoing ownership costs
Career Changes
Whether voluntary or not, career transitions impact finances significantly:
Changing Jobs
- Compare total compensation, not just salary
- Understand new benefits—health insurance, retirement matching
- Roll over retirement accounts properly
- Negotiate salary and benefits
- Consider relocation costs if applicable
Job Loss
- Apply for unemployment benefits immediately
- Evaluate COBRA vs. marketplace insurance
- Prioritize essential expenses
- Avoid touching retirement accounts if possible
- Update your budget to survival mode
Divorce
Divorce is emotionally and financially challenging. Protect yourself by:
- Gathering financial documents (taxes, account statements, debt records)
- Understanding your complete financial picture
- Opening individual accounts if needed
- Working with qualified divorce attorney
- Considering mediation to reduce costs
- Updating beneficiaries and estate documents post-divorce
Death of a Spouse
Beyond grief, practical financial matters require attention:
- Locate will, life insurance policies, and financial accounts
- File for survivor benefits (Social Security, pension)
- Claim life insurance proceeds
- Update account titles and beneficiaries
- Understand tax implications for the transition year
Caring for Aging Parents
As parents age, you may face caregiving and financial support decisions:
- Discuss parents' finances, insurance, and wishes early
- Understand Medicare and Medicaid
- Research long-term care options and costs
- Consider implications for your own retirement
- Look into caregiver support resources
Life transitions are inevitable. Proper insurance and emergency savings provide crucial buffers, while professional advice from financial planners, attorneys, and accountants helps navigate complex situations.
