Getting married again means more than planning another wedding.
Remarriages are fairly common in the United States.
Whether the result of death or divorce, they often involve more considerations than a first marriage.
Couples must consider a number of factors as they blend families.
According to a recent CNBC article titled “Remarrying? Here are financial considerations to keep in mind before saying ‘I do’,” one significant area to discuss is finances.
Money conversations are vital to building a life together.
Did you know marriage counselors report that “financial incompatibility” is a leading threat to marital harmony?
It is important that you and your intended openly discuss how you plan to handle assets and liabilities being brought into the marriage, provide current financial snapshots, and chart future goals.
Future considerations should involve what will happen in the event of divorce or death.
When blending families, the children will also be exposed to different financial priorities.
Those who are getting married should have a conversation with their own children about the financial expectations for the new blended household.
In addition to budgeting, the couple needs to review how getting remarried will influence other benefits.
Consider Social Security.
Those who were married for more than 10 years and are currently collecting the Social Security benefit on account of the former spouse may forfeit these benefits when getting remarried.
Another benefit impacted by marriage is insurance.
Because marriage is considered a major life event, you can adjust your insurance outside of the typical window.
Did one of you receive discounted insurance through the healthcare.gov exchange?
If your combined income increases, you may find your insurance payments also will increase.
Taxes can also be higher due to a new joint income.
This phenomenon is often referred to as the marriage penalty.
When getting remarried, you will also need to discuss estate planning.
You should inventory what each future spouse is bringing into the marriage.
Before deciding whether to co-mingle assets, you should talk with an experienced estate planning attorney.
This professional will be able to advise on how to protect each party and his or her children in the event of divorce or the death of one spouse.
Depending on the circumstances, perhaps you intended would be better served with representation by separate attorneys.
Regardless, before getting remarried and after getting remarried, financial conversations are necessary.
Reference: CNBC (March 7, 2022) “Remarrying? Here are financial considerations to keep in mind before saying ‘I do’”