Many people find love a second time. While you may be older and wiser than when you first got married, there are still easy financial mistakes to make. Below, you can find a financial checklist that can ensure you are entering into your second marriage financially prepared for every eventuality.
- Get a prenuptial agreement. Many people are hesitant to bring up a prenuptial agreement, but it is an essential part of a second marriage, particularly if your second marriage is occurring at or near retirement. Whether you have a business to protect or want to avoid the length and expense of divorce a second time, a prenuptial agreement is a good idea.
- Revisit your retirement plan. Marriage can affect pension payments, Social Security disability benefits and alimony. Before marriage, make sure you understand whether any of your income will be affected by marriage. You may also have to look at your divorce settlement to determine if there are any complications. For example, if you already agreed to give your Social Security survivor's benefits to your ex-spouse, your new spouse may have to split it in the event you predecease your spouse.
- Create a new estate plan. From protecting the inheritance for children from a previous marriage to changing the beneficiary of your life insurance, it is important to thoroughly review your estate plan. Everything from Medicaid planning to estate taxes can change from remarriage. If you have adult children, it helps to include them in the conversation to avoid creating any potential issues.
You may have other financial considerations depending on your circumstances. However, anyone going through a second or subsequent marriage should complete the above steps. Because financial arguments are a leading cause of divorce, entering into marriage knowledgeable and prepared about your finances can ease stress on the marriage and get your new life together off to a great start.