This guide will walk you through common financial mistakes to avoid when remarrying, helping you build a strong foundation for your new life together.
Honest conversations about money are critical before you remarry. You and your partner should discuss your complete financial pictures, including assets, debts, income, and retirement savings.
A prenuptial agreement may seem unromantic, but it is a practical tool for protecting both partners. It’s a document that tells the law how you as a couple want to handle assets and debts during and after the marriage (should it end). It gives you both the opportunity to protect the assets you worked hard for all your lives to earn before entering the marriage.
Additionally, a prenup is especially important if you have children from a previous marriage, significant personal assets, a family business, or an inheritance to protect.
Your existing will, trusts, and beneficiary designations need to be updated after you remarry. Without these changes, your assets might not be distributed according to your wishes.
Remarriage can affect certain financial benefits. You must understand how your new marital status impacts Social Security benefits, pension payouts, and any alimony you might receive.
Neglecting Open Financial Discussions
Honest conversations about money are critical before you remarry. You and your partner should discuss your complete financial pictures, including assets, debts, income, and retirement savings.
Moreover, you need to align on your financial goals, spending habits, and expectations for the future. A failure to have these talks could result in serious conflicts and misunderstandings down the road.
Overlooking a Prenuptial Agreement
A prenuptial agreement may seem unromantic, but it is a practical tool for protecting both partners. It’s a document that tells the law how you as a couple want to handle assets and debts during and after the marriage (should it end). It gives you both the opportunity to protect the assets you worked hard for all your lives to earn before entering the marriage.
Additionally, a prenup is especially important if you have children from a previous marriage, significant personal assets, a family business, or an inheritance to protect.
Ignoring Estate Plan Updates
Your existing will, trusts, and beneficiary designations need to be updated after you remarry. Without these changes, your assets might not be distributed according to your wishes.
For instance, your former spouse could unintentionally remain the beneficiary of your life insurance policy or retirement accounts. You should review and update your power of attorney, healthcare directives, retirement accounts, and insurance policies.
Misunderstanding Benefit Implications
Remarriage can affect certain financial benefits. You must understand how your new marital status impacts Social Security benefits, pension payouts, and any alimony you might receive.
Per the latter, remarriage can affect spousal support in Washington and other states, so it’s important to understand how your local law will decide. Consult with a financial advisor and lawyer to understand these changes and plan accordingly.
Now that you know the top financial mistakes to avoid when approaching remarriage and retirement, you can lay a great, healthy foundation. This is the bedrock upon which your past can remain protected, and your future can flourish.
Now that you know the top financial mistakes to avoid when approaching remarriage and retirement, you can lay a great, healthy foundation. This is the bedrock upon which your past can remain protected, and your future can flourish.
