Financial Considerations Before Remarriage
If you’re about to remarry, you’ve probably already made some major decisions together — such as how you introduced your families to each other or deciding where you will live. And that’s just the beginning. You and your new spouse will also have to work out a number of financial and estate planning issues. The best time to do that is before, rather than after, you walk down the aisle.
All couples should share their financial information with each other before they marry. But it’s especially important for couples entering a second marriage, when each partner’s finances may be complicated by divorce decrees, child support and alimony arrangements. Having a clear understanding of each other’s financial situation and obligations can spark the discussion of how you’ll handle your joint financial issues in the future.
Discuss Child-related Costs
If one or both of you have children, paying future college costs or other major expenses may be a topic for discussion. Decide whether you’ll share expenses for all children or each of you will pay your own children’s costs separately. Be sure to take into account any expected contributions from the other parent(s). Remember that household income will be a consideration in determining college financial aid.
Revisit Retirement and Estate Planning
Revising your will and updating beneficiary designations for employer-sponsored retirement plans and individual retirement accounts should be priorities. View more information on updating beneficiaries for your MERS plan(s). Discuss your estate planning goals with your new spouse and your financial professional. You may want to consider establishing one or more trusts to provide for your surviving spouse and children when you pass. For more, view our video on estate planning.
When you remarry, you’ll want to review your current life insurance coverage to determine if it’s adequate. You might need to update your beneficiary designations on your policies to reflect your new circumstances. But don’t stop there. Your auto and homeowner’s policies may need updating as well. This is especially important if your new family includes teen drivers or your spouse owns valuables that aren’t covered under your existing policy.