How to Calculate Net Worth After Marriage

A trained financial advisor can assist you with calculating your net worth.

Financial goals are important for both single and married persons. Net worth gives a couple or an individual an idea of their level of financial health by weighing assets against liabilities. Calculating your net worth periodically can help you and your spouse track your progress toward your financial goals. Knowing your progress will help you meet those goals sooner. Many are unsure of how to calculate their net worth after marriage, but fortunately the process is very similar to calculating individual net worth.

Instructions

1. List the assets of both yourself and your spouse. This should include savings accounts, certificates of deposit, U.S. savings bonds, money market accounts, stocks, bonds, mutual funds, government securities, employee stock options, cash value of life insurance policies, surrender value of annuities, income-producing real estate, pension or profit sharing plans, IRAs/Keogh accounts, employee savings plans, 401k accounts, home, furniture and equipment, all vehicles, collectibles and valuable jewelry.

2. List the value of each item or account. Include the current market value only, not what you paid for the item. When listing any investment accounts list the amount you would receive if you were to withdraw your investment today. Remember that life insurance cash value is not the same as the benefit amount. Speak with your agent to get the current cash value of your policy.

3. List the liabilities of yourself and your spouse. These should include home mortgage balance, installment debts, credit card debt, other loans, past due bills and any taxes that were not withheld for the previous year. Any other debts not listed should also be included.

4. List the amount of each debt. Use your most recent statement or contact your financial institution to obtain the current balance.

5. Add the value of all your combined assets together. Then, add the amount of your combined liabilities together. Subtract your total liabilities from your total assets. This is your net worth as a married couple.

6. Divide this number in half to calculate your individual net worth.

References

• New Mexico State University Cooperative Extension: How to Calculate Your Net Worth
• University of Michigan Retirement Research Center; Saving for Retirement: Household Bargaining and Household Net Worth; Shelly Lundberg, et al.; April 2000