The marriage rate in the UK declined sharply by 69% to just 2.3 persons per 1,000 people through 2020/21, with this driven by the ongoing impact of Covid-19.
Fortunately, normal service is set to resume in 2021/22, with the rate of marriage expected to increase by a whopping 205.1% to seven persons marrying per 1,000 people during this period.
Interestingly, newlywed couples can also face complicated financial circumstances when they first tie the knot, as a result of costs, debts, rents and poor credit. But what are the main fiscal challenges, and how can they be successfully overcome?
#1. The Cost of Marriage
The average cost of a wedding in the UK was £20,731 in 2019, with this falling sharply to £14,422 against the backdrop of the coronavirus pandemic the following year.
However, this sum is expected to rise to 2019 levels once again this year, highlighting the huge challenge that couples can face when looking to bring the wedding day of their dreams to life.
Even if you aim to reduce costs, there may be aspects of your wedding that you’re unwilling to compromise on, including the bride’s wedding dress, the venue or the food that you lay on for your loved ones.
But how can you tackle this issue? Well, much will depend on your financial circumstances and precise plans, but you may want to consider taking out a loan. Even if you have a poor or chequered credit history, you can seek out bad credit loans that are tailored for people who have struggled financially in the past.
#2. Reduced or Lost Maintenance
If you’re marrying for the second or third time, you may be in receipt of maintenance payments from your ex-partners.
While this maintenance represents a financial contribution to any children in the family (and rent or mortgage repayments towards the family home in some cases), it may stop in instances where you remarry and choose to cohabit with your new partner.
This is despite the fact that child support will remain unaffected, and it can deliver a significant hit to your finances in the near-term.
Of course, this will be at least partially offset by your new partner’s income, but it’s important to seek out legal advice where necessary and make short-term financial plans as you look to rebalance your finances.
#3. Managing Combined Incomes and Expenditure
On a final note, we should recognise that marrying a new partner and cohabiting creates a swathe or new (and joint) bills that augment our existing financial commitments.
This can be challenging, as you’ll need to create a brand new budget that takes into account your newly adjusted incomes (including child support or tax credit payments) and total expenditure (both individually and as a couple).
You can then start to prioritise bills and determine which will be paid jointly, while recognising which payments should be made by each individual.
This can help with the transition and make it easier to manage your finances during such times, while it may alleviate some of the financial stress associated with starting a new relationship.