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Legal Issues | Advice
Keep track of the latest Bridal Guide advice articles, specifically legal issues.

• Clean Up Your Credit Records
  You're marrying your greatest love—and his credit history! Here’s how to clean up your credit-card act, together.by Nicole Burnham Onsi"I'm very careful with my money; I always have been," says Mia Piccolo*, a New York City-based editor who was married in November 2000. "When I met my husband, George*, he was stuck in a revolving door of debt thanks to graduate school. He was paying the minimum amount each month, and figuring that once he finished school he could tackle the balances. He didn't like it, but he had become used to it. But I felt the debt was looming over us; I wanted to start married life debt-free."Mia's lament is a common one. When two people merge their money, differences in their spending and saving habits quickly come to the fore. And nowhere is this more apparent than in the area of credit-card debt. So what can you do to keep your financial future as promising as your new marriage? In a word: Talk. "We came clean about our credit cards and their balances," says Mia. "Just because you're in love with someone, and know them intimately, doesn't mean you'll know just what cards they have. It's not something that comes up when you're dating." Know What You've Got Without looking, can you say how many credit cards are in your wallet? How many are in your fiancé's? If you're patting yourself on the back for knowing the correct answers, ask yourself this: What are the interest rates on all those cards? What are the outstanding balances? What's your plan for paying them off? Ah. Now it's time to get specific. According to Carrie Coghill, coauthor, with Evan Pattak, of The Newlywed's Guide to Investing and Personal Finance (Career Press), the first thing couples should do is take stock. "Lay your cards on the table—literally," she says. Get out statements, and review balances and interest rates. Second, obtain copies of your personal credit reports. (Contact either TransUnion, 800-888-4213 or tuc.com; or Equifax, 800-685-1111 or equifax.com.) Reviewing that report can be quite an eye-opener. "It shows everything - from credit and charge cards to mortgages and student loans - indicating both open and closed accounts and payment track records," Coghill explains. Double-check all information, and report discrepancies immediately to the credit-card company in question. What you don't know can hurt you: A spotty credit history can hinder your ability to get a mortgage. When Massachusetts lawyers Beth and Rob Martin married in February 2001, they planned to buy a house, a goal they couldn't accomplish without first having a serious financial discussion. "We reviewed our credit cards," says Beth, "and looked at our credit reports." Thankfully, there were no unpleasant surprises, and the couple bought a home. Pay 'Em Off, Close 'Em OutPutting the Wedding on PlasticAccording to a recent Bridal Guide online poll, 44% of engaged couples planned to pay cash for just about all of their wedding expenses. Twenty-nine percent expected to use credit cards, and a discomfiting 27% said they would take out a bank loan to cover the cost of their nuptials."Not smart," says Carrie Coghill, coauthor of The Newlywed’s Guide to Investing and Personal Finance(Career Press). First, you’ll start your married life in debt, which will only get worse if you start charging things like home furnishings or honeymoon clothes. Second, credit makes you more likely to overspend. "If you pay cash, you can stick to a $500 budget for the wedding cake. But plastic makes it easier to make a snap decision to go for the $800 cake." Yet using credit cards for wedding expenses does protect you from fraud. If you do put wedding purchases on plastic, just be sure that you have the cash on hand to back them up—and pay the bill as soon as it comes. Once you're aware of your exact credit-card situation, make a plan to zap any existing debt. It may be tempting to pay off the lowest balances first—giving you a fast sense of accomplishment. But in the long run, explains Coghill, paying off the higher-interest cards first will save you money in interest. "Establish a spending plan," she advises. "Figure out the most you can pay each month, and apply that to the highest-rate card." If you have one lower-interest card, you might also investigate transferring high balances to that card. When Mia and George married and she sold the apartment she owned, the couple took a chunk of the proceeds and used them to pay off the balances on both hers and George's cards. "He was hesitant at first to use ‘my' money for ‘his' debt," says Mia, "but when I explained that the debt was ours now, not just his, and how we'd be at a great financial advantage by starting married life debt-free, he agreed." After you pay off those cards? Close those accounts! Just make sure you do it the right way. "Cutting up cards and tossing them in the trash doesn't do the whole job," says Rudy Cavazos of Money Management International, in Houston, Texas, which is affiliated with the nonprofit National Foundation for Credit Counseling (NFCC). "Call the credit-card company, tell them you want to close the account, then get the address to which you should send a written request." Emphasize that you want a "hard" close on the account, says Cavazos, which means you'd have to reapply if you want to open that account again. "A ‘soft' close won't show up on your credit report as closed," he explains. Choosing Credit WiselyAs you're working toward a nice, round zero on that credit-card statement, you should also be reevaluating what cards you'll keep. After all, does it really make sense for both you and your husband to have separate department-store charge cards and separate Visa, MasterCard or American Express accounts? According to Coghill, most couples really only need one joint credit card. You'll reduce the temptation to spend, and you'll only have one statement, which makes record keeping easier. "Use your credit card only when you have to - for car rentals, telephone or internet purchases, and other things that require one," she advises. If you use cash for everything else, like restaurant meals and clothing, you'll likely find yourself spending less. The question is, how do you know what card is best? According to Cavazos, you should look for three attributes: the lowest possible interest rate; the longest possible grace period (look for a minimum of 25 days); and no annual fee. It's also nice to find a card that gives you some sort of reward, like air miles or points toward hotel stays. To find cards with the lowest rate, Cavazos suggests going to your own bank first. "Since you have a history with them, they're likely to give you a lower rate—around eight or nine percent." Coghill agrees. "Be honest. Tell them you're looking to eliminate cards," she advises. "Ask them what they're willing to do to keep your business." Finally, there are great resources on the web for finding low-rate cards, such as bankrate.com. "Shop around for the right credit card just as you would for the right car," says Cavazos. * These names have been changed.
• Insurance Overview
  You’ll be in better hands if you investigate insurance. From home and health to auto and life, here’s what you need to know.by Francie Arenson DickmanIt's a safe bet that "buy adequate insurance coverage" doesn't top your wedding to-do list. Purchasing insurance policies is not like planning your honeymoon or picking out your china pattern — it's hardly exciting, it's often confusing and you can't simply register for them at the nearest department store. Nonetheless, no matter how busy you are planning your future, you also must protect it. Your PropertyThe two of you may have recently moved under the same roof and bought or received as gifts some expensive stuff. Perhaps you've even bought a home together. It's prime time to reassess your property coverage. The type and amount of property you own determine the protection you need. Homeowners insurance covers the cost of replacing the structure of the house, the property inside and the items around it. So if you own a home, you definitely need homeowners insurance. But if you've bought a condo or co-op, you don't, explains Scott Heiman, vice president of Sussex Financial Group, Inc., an independent insurance agency in Deerfield, Illinois. Typically, the condominium association or cooperative buys coverage for the structure; what you need is to insure your own space. It's less expensive than homeowners since it only insures from the "walls on in," says Heiman, protecting against theft, fire or water damage, for example. When shopping for any type of homeowners insurance, "Find a policy that provides a guaranteed replacement value rather than actual cash value so that you can replace your property new at today's prices," says Heiman. Also, buy a policy that includes "loss of use," to cover the cost of temporary housing if your place is left uninhabitable. Finally, make sure to adequately total the value of your belongings so you can replace them. Some items, like engagement rings and other jewelry, antiques or artwork, most often exceed the limits of a policy, and need to be listed on a separate "schedule" for an additional cost. Your IncomeWhen you're at your happiest it's hard to think about the possibility of life not being so promising. But getting married is the ideal time to ponder life insurance, which protects against loss of income due to death, and disability insurance, which pays out if you can't wor