The Finance Blogger

Finances & Remarriage

Finances and remarriageFor most people who are getting married, finances and remarriage are the last thing on their minds other than how they are going  to pay for the wedding and perhaps the first months rent. When you do not have many assets, it is not that big and issue, however anyone entering a 2nd marriage will often have assets that they bring to the marriage and then it becomes important to have some sort of understanding as well as a record of what those assets are.

Young first time married couples usually do not have much in the way of assets, wills , obligations etc. People who are getting married for the 2nd time, may have existing families that need to be thought about and supported. They may have accumulated assets and they may have court ordered obligations that they need to meet. All of these kinds of things will have an impact on the new marriage from a financial perspective as well as an estate perspective. Wills may need to be amended or updated and agreements put in place specifying how assets are to be distributed should this be needed.

Finances and remarriage

Each person coming into the 2nd marriage or even a first marriage were the couple is older and have acquired assets, each person will bring various levels of assets and different assets as well. Family members on both sides may be concerned about their loved ones and how the estate will be handled. Finances and remarriage in either situation is an important consideration.

While no one really wants to discuss this sort of thing. Life can be made much simpler when agreements are in place ahead of time. You can avoid expensive legal costs as well as family turmoil.

Finances and remarriage – What Things should be Discussed

The following items are a good list of things to discuss and document prior to the big day:

1. How will we merge our finances?

Both parties may bring different savings, different debts and a variety of existing  expenses into the relationship. How will you deal with these once married? As new debts are added while in the marriage, how will these be dealt with and shared while in the marriage? These and many more details should be discussed and sorted out prior to moving in together or getting married.

2. Is a pre-nuptial agreement or co-habitation agreement right for us?

Sometimes it is just simpler if you have a pre-nup. There is no confusion and both parties understand what is supposed to happen in the event of a separation. How will you divide the assets in case of separation?

3. How will our children be taken care of when we pass on?

Often when couples are getting married for the 2nd time, there can be children from previous relationships. Supporting blended families in the new marriage or cohabitation  should be discussed in detail so that there are no misunderstandings afterword.

4. Do we need to set up a trust?

Some people will set up trusts to support children from a previous marriage, including their education. While many people think that this is something only the rich do. It can also be a good financial tool to many people as well. For anyone who wants to make sure that there is at least some money that will be available to their children over a long period of time.

5. If we decide not to get married, what financial matters do we need to consider?

In post jurisdictions one year is the measurement and the same rules apply as if you were married. However check with a lawyer or financial adviser regarding the specifics were you live.

While for some people they may feel that this kind of discussion will detract from the wedding day. It is really solid planning and discussion that can take place with the assistance of a third party that will ensure that everyone’s interest are taken care of in a fair and supporting way.

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One Response to “Finances & Remarriage”

  1. our second time around on the marriage front. We each have our own accounts and we each pay 50% of the regular bills. Anything special that we want for ourselves or for the house, we individually pay for these items. Sometimes there is lots of discussion, when one person does not want to pay for something, but it works for us.

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