It’s more than likely that couples considering remarriage will do so with assets of greater value than ever before. If so, you may want to consider a pre-nuptial agreement to sort out issues and ensure that what you bring to the new marriage goes where you want them to go in the event of divorce or death. Here are a few things to think about and understand prior to your marriage.
Credit History and Ongoing Debt. Each of you should provide full disclosure of any credit card and mortgage debt, bankruptcies, prior co-debts, judgments, parental care or medical bills.
Extent of Total Net Worth. Be sure to itemize incomes, pensions, savings, real estate, cars, collectibles, business interests, investment portfolios, life insurance, etc.
Financial Support. Should you have separate accounts or a joint account for on-going expenses and separate accounts for discretionary or obligatory expenses?
Previous Obligations. Discuss when alimony or child support ends. Are you required to provide insurance coverage? Will remarrying stop any inheritance or other financial support?
Property Issues. Which house becomes the marital home? Who will own or live in the house if the marriage ends? Should the new spouse be put on the deed or compensated for contributions. Beware because you still risk losing the home. All it takes is a judge or an aggressive divorce attorney.
Child Support. Establish how much support each child will receive, which parent will be responsible for this support and where it will come from? Letting your children know up front that you’ve made provisions to protect their inheritance may make them more supportive of your new union. You may want to consider naming your stepchildren as beneficiaries as well.
Seek Professional Guidance. Remarriage is an opportunity to review your wills, trusts and beneficiaries. Keep in mind that your spouse may be entitled to a portion of your estate, even if your will or trust states otherwise. If keeping assets in the family is important, work with your attorney and financial advisor to preserve assets in the way in which you intend.
Timothy J. Shaner, MBA, ChFC, CLU, CFP, president of Capital Consultants, a Wealth Management Group.
For more information call 661-259-1644 or 818-557-7289, visit our website www.capitalconsultants.org or drop me an email at tjshaner@capitalconsultants.org .