{"id":2269,"date":"2018-06-30T00:00:20","date_gmt":"2018-06-30T00:00:20","guid":{"rendered":"https:\/\/fdfamilylaw.wpenginepowered.com\/?p=2269"},"modified":"2023-04-26T16:59:22","modified_gmt":"2023-04-26T16:59:22","slug":"financial-considerations-for-remarriage","status":"publish","type":"post","link":"https:\/\/fdfamilylaw.com\/financial-considerations-for-remarriage\/","title":{"rendered":"Financial Considerations for Remarriage"},"content":{"rendered":"

There are financial considerations a couple should contemplate and address before remarrying.\u00a0 From alimony to social security, the decision to remarry can have consequences that affect each person\u2019s bottom line.\u00a0 A prenuptial agreement can address concerns the parties may have \u2013 or any concerns the children may have, about family heirlooms and family businesses.<\/p>\n

Financial Considerations for Remarriage: Discuss Assets<\/h2>\n

Before remarrying, a couple is wise to discuss their assets, as well as their expectations about their assets.\u00a0 Couples should discuss their assets.\u00a0 They should decide which assets they wish to comingle.\u00a0 They should also discuss and clearly identify which assets should remain separate.\u00a0 If one or both parties have children, they should have a discussion about the children\u2019s inheritance.\u00a0 In addition to whether the children will inherit, couples should consider when the children will inherit.\u00a0 Will they receive an inheritance immediately?\u00a0 After the second spouse dies?\u00a0 A bit of both?<\/p>\n

Financial Considerations for Remarriage: Talk with the Family<\/h2>\n

When a couple has a good idea of what they want to do about their assets, it might be a good idea to discuss their choices with the adult children.\u00a0 This is not a good idea for every couple or for every family with adult children.\u00a0 However, for many families, a frank and open discussion about areas where the children might otherwise be concerned can ease tensions.<\/p>\n

Financial Considerations for Remarriage: Talk with Shared Business Owners<\/h2>\n

If there is a business owned by one of the parties to the marriage, it may be a good idea to have a discussion with the business partners, once the couple decides how they view the business during the marriage.\u00a0 If the marriage ends either in divorce or with the death of the spouse who owns the business, the business, and the business partners, may feel an impact.\u00a0 Thus, the couple may want to address their intentions with the business partners directly.<\/p>\n

Financial Considerations for Remarriage: Retirement Accounts<\/h2>\n

Often, a couple\u2019s retirement accounts are a critical source of income for an older couple.\u00a0 How will retirement accounts receive continued funding?\u00a0 Will funding continue on an ongoing basis?\u00a0 Does one partner\u2019s retirement account require more attention than the other partner\u2019s account?\u00a0 There isn\u2019t a \u201cright\u201d answer.\u00a0 However, it is a good idea to have a discussion about how the retirement accounts will be treated.<\/p>\n

Financial Considerations for Remarriage: Estate Planning<\/h2>\n

Even if someone has an estate plan in place already, this should be reviewed.\u00a0 Each party should review their living will, ensuring the party named in the living will remains the party they wish to make end of life decisions for them.\u00a0 Wills may need rewriting.\u00a0 Living trusts may need modification.\u00a0 If one or both parties have not yet done any estate planning, they should address this \u2013 particularly for couples who have children.<\/p>\n

Financial Considerations for Remarriage: Life Insurance<\/h2>\n

Whether one needs life insurance, and how much, are questions each person should ask themselves.\u00a0 Life insurance proceeds may pay for funerals, as well as provide ongoing financial assistance to those left behind.\u00a0 Every situation is different.\u00a0 However, what remains constant is the need for every couple to evaluate what they, and their potential heirs, may need.<\/p>\n

Financial Considerations for Remarriage: Alimony<\/h2>\n

Typically, one stops receiving alimony once they remarry.\u00a0 However, one does not typically have to stop paying alimony just because they remarry.\u00a0 Couples should consider how remarriage may impact their particular alimony situation.<\/p>\n

Financial Considerations for Remarriage: Check Your Account Beneficiaries<\/h2>\n

Despite being encouraged to do so, many people fail to change their beneficiary designees on their financial accounts after a divorce.\u00a0 When remarrying, it is a good idea to review the beneficiaries of all accounts, including bank accounts, retirement accounts, investment accounts, annuities contracts, and other financial accounts.<\/p>\n

Financial Considerations for Remarriage: Talk About Your Financial Philosophy<\/h2>\n

Most people don\u2019t like discussing money.\u00a0 However, it is a good idea to discuss your financial philosophy before a remarriage.\u00a0 Some people consider providing for their elderly parents an obligation, while others do not intend to assist their parents.\u00a0 Similarly, some people provide financial support to their adult children, while others do not.\u00a0 There isn\u2019t a right answer to what one does with their money, however, both parties should have an understanding of the other person\u2019s attitudes toward money.<\/p>\n

Financial Considerations for Remarriage: Get a Prenuptial Agreement<\/h2>\n

For couples remarrying, a prenuptial agreement provides an excellent way of ensuring a couple\u2019s joint desires are respected.\u00a0 A prenuptial agreement provides a mechanism for families, designating which assets will be jointly held, and which assets will remain the property of one party to the marriage.\u00a0 Couples can designate assets, such as jewelry or art, that will be passed down to their children.\u00a0 Once identified, a prenuptial agreement can prevent any asset from inclusion in divorce proceedings. A prenuptial agreement can also address:<\/p>\n