Q.     “My spouse handles all of the finances and has done so for the entire length of our marriage. I have no idea what our assets are or what bills we pay on a monthly basis. Should I be concerned?”

A.     Yes, you should be concerned. Not knowing anything about your financial situation is only harming yourself. While it can be true that one spouse may have more talent, or may actually enjoy handling the day-to-day finances, it is really very dangerous for you as a couple. If the spouse who handles the finances has a medical emergency, or suddenly passes away, you will be left in a very precarious position.

The number one question you need answered is, “If my spouse passed away this morning, would I have access to liquid cash?” Liquid cash means that money which is immediately available so you can buy groceries, put gas in your car and pay the house or rent payment. You need to think of basic survival necessities: food, warm shelter, access to medical care if needed, etc.

The second question is “Where is this liquid cash?” Which bank, what is the account number, is your name on the account as a joint owner, where is the check book, where is the credit card, what is the limit on the credit card, etc..?

It is commonly recommended that couples sit down at least once a year and have a “financial summit.” This is a meeting where you discuss all financial assets, where they are located, how they are titled and the financial plan in an emergency. I recommend that you also use the financial summit to review your estate plan. Make sure your health care and financial power of attorneys are up-to-date. Review your beneficiaries on all checking accounts, life insurance policies, brokerage accounts, etc. Read your wills and review who you have named as personal representatives. If any of these documents are incorrect due to changes in circumstances, you will want to have them updated.

There is nothing wrong with one spouse handling the day-to-day financial duties, so long as both spouses know the overall financial picture. If you have any questions during your financial summit, please seek out a qualified financial advisor and/or a qualified estate planning attorney.

Laura L. Colt is an estate planning and bankruptcy attorney with LaRowe Gerlach Taggart LLP. While the information in this column is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein.

For more information regarding estate planning, or any legal issue you may be experiencing, please see our website at www.lgtlawfirm.com, or call 608-524-8231 to schedule an appointment with one of our knowledgeable and professional attorneys.