Financial planning is important for any couple looking to get married, but it is particularly important those who’ve been around the block before and are looking to get married again.
In second marriages, most folks have collected and earned more assets, may have children, may have significant investments or business interests, and so on. For those who are older, there is retirement to think about. In such circumstances, it is important to make financial planning an area of focus in preparing for marriage.
Prior to a second marriage, it is important to be on the same page as your fiancé when it comes to finances. According to surveys, only 20 percent of all couples discuss finances and fully disclose their situation before marrying. It may be obvious, perhaps not, but a decision to marry does not necessarily mean a couple’s financial goals are the same.
If not addressed, these differences can lead to conflict later on. Prenuptial agreements can be invaluable tools in helping couples sort through finances and learn where each other is at prior to marriage. As useful as prenuptial agreements are for managing finances in the event of divorce, it is important to take other steps to protect yourself financial, particularly in the case of second marriages.
Those who are marrying a second time should also look to update their wills, trusts, powers of attorney, and other estate planning documents. Beneficiary designations should also be updated to reflect one’s changed circumstances.
These and other preparations can make all the difference in terms of getting one’s finances in order for a second marriage.
Source: Marketwatch.com, “Boomer weddings: What to do before marrying assets,” Joe Jucey, July 1, 2013.