Second Marriages and Finances
While getting married again is exciting, it’s important to consider your financials before you tie the knot. Before getting married, you and your partner should consider your liabilities, assets, incomes, and expenses.
Consider Children From Your First Marriage
If one or both spouses pays or receives child support or alimony, you should discuss financials before getting married. You will also need to discuss expected education expenses, including public or private school, college funds, and extracurricular activities.
Review Important Financial Documents
You and your fiancé should review several documents before getting married, including:
- Bank accounts
- Tax returns
Even if assets are titled separately after marriage, they can become common assets under marital law in certain states.
Consider a Prenuptial Agreement
Prenups can be beneficial for many couples. These documents allow you and your spouse to determine what will happen with your finances if you decide to get a divorce. They’re a way to protect each individual. Prenups or postnups can also help determine how you plan to merge your finances.
Put Your Financial Plan Into Writing
Consider your goals as a couple and for your children, whether they’re from previous marriages or you’d like to have your own. You can think about where your kids may attend school, if you would like to buy a new home, or if you want more children. Financial plans help make these goals more visible and attainable.
Talk About Combining Finances
You and your partner should discuss whether you want to keep your finances separate or combine them. For example, if you have children from a previous marriage, keep your finances separate from your new spouse. Another reason to keep finances separate is if one of you has many more financial resources.
Often, having separate accounts and one joint account is the right course of action for people getting remarried.
Review Your Estate Plan
Reviewing your estate is something you should keep in mind when getting remarried. Determine if you intend to keep your children as your beneficiaries or if it’s a good idea to add your partner to your life insurance policy. Power of attorney is another area where you may need to make changes. Look at your wills, living wills, health care proxies, retirement savings accounts, and annuities.
Prepare Plans for Your Second Marriage Finances With Fort Pitt Capital Group
If you’re planning to marry again, speak with a financial advisor to get second marriage financial advice to ensure you have a plan. Trust our team for exceptional service and contact us online or visit our individual services page to learn more.