Financial planning before remarriage

Financial planning before remarriage

All decisions regarding marriage are important, whether in the first or second marriage or if it is a case of a widow or widower remarrying. Marriages often create family law questions that need answers regarding finances, assets and division of properties in divorce or remarriage. It is essential for spouses in Illinois to consider these issues before marriage. Widows and widowers, in particular, should be cautious financially before they remarry because their situations can be complicated by children and inherited property from the first marriage.

Maintaining a balance between assets and the second marriage can be complicated and it is advisable to write a prenuptial agreement before remarrying. If the couple doesn’t want a formal agreement, the issues should be discussed openly and then put in writing. This will not only reduce the children’s worries but will hopefully eliminate complications in the future.

It is often advisable to keep assets separate that were acquired before the remarriage from those acquired in the remarriage, which are jointly owned. Regarding the home, it should be decided whether to keep the house for the children to inherit and take care of the necessary legal paperwork.

In issues related to everyday expenses, advanced planning will establish what each partner’s contribution will be. Also, any child support or alimony payments should be established. Additionally, payment of existing debts and future debts should be planned in advance. Regarding taxes, filing a joint return is often beneficial. If that is not possible, the advice of a tax consultant will be helpful in establishing tax payment terms.

Planning should also include insurance, medical expenses and what will happen in the event of divorce of the remarriage. Also, it is required to revise and re-plan previous estate plans to protect the children’s inheritance rights and separate assets pertaining to remarriage and the previous marriage.

While taking all of these issues into consideration, it is a good idea to get advice from a family law professional who can guide the person in state law matters and help to keep individual assets secure.

Source: Townhall, “What Financial Precautions Should a Widow Take Before Remarrying?” Carrie Schwab Pomerantz, Nov. 26, 2012