Marriage is a major commitment, no matter what age. Those who choose to marry later in life for the first or second time, or beyond, have to take extra care to prepare for the impact on their finances.
Although marriage is not about the money and assets, a marriage later in life has its own set of complications if you are not thoughtful in how you manage your personal finances. You may be especially sensitive if you have gone through a messy divorce in the past. Here are some things you should think about before your marriage to ensure everyone has a happily ever after.
Discuss the Marriage With Your Family
When you have not been in a marriage for a while and are well-established, introducing a new person into your family can be a sensitive topic. This can be especially difficult if you were recently in a marriage and you have older children who may find it hard to understand your wish to remarry.
Talk about your marriage with your family. Make sure they understand your intentions, and reassure them you will be smart with how you deal with your estate and financial circumstances.
Talk About Your Assets
When you plan to marry when you are both established, you need to discuss how you will deal with your assets now and any plan to obtain in the future. If you acquire money together during your marriage, are you going to put your finances together or keep everything separate?
You also need to discuss where you will live. Since the marriage will take place at a later time in your life, chances are both of you have a home of your own. Which will you live in? Should one of you sell a home? How will you handle payment for a new home? All of these important questions are very important to discuss ahead of your nuptials.
Think About Your Retirement
Whether retirement is a long way off or just around the corner, you need to discuss both of your retirement accounts before marriage. Retirement accounts are the sole source of income for most people.
Are you both going to add to the other's retirement accounts? Should you open another retirement account together, such as an IRA? Will you each have to live on your own accounts and come together to pay your household bills?
Look at Your Estate Plan
A marriage is the perfect reason to evaluate your estate plan to make sure your will is correct. Most people add a new spouse to a will once they get married to make sure the other receives enough to live on after his or her death.
This presents another opportunity to speak to your families about your wishes after your death. If you want to ensure your children get your estate, you need to indicate so in your will. You can opt to open trusts for each of your children or other family members to ensure they receive the assets you want them to have.
Discuss Your Life Insurance Needs
Another item to discuss is what kind of life insurance you have and whether or not you need to add additional coverage. Although your marriage is later in life, one or both of you may still have children who live in the home. You may want to consider adding the children to a policy you buy together to make sure their needs are met in the event of your death.
If you have any questions or concerns about a marriage later in life, please contact Clara Yang Attorney At Law. We pride ourselves on our accessibility to our clients.