Many Massachusetts residents who have legally ended their marriage decide at some point to begin a union with a new partner. People who remarry following a divorce may encounter challenges around finances that are specific to a second marriage, particularly for older individuals who have accumulated some wealth. Although details may differ, newly married couples in this type of situation should take note of the following tips.
Perhaps most importantly, individuals who remarry are wise to fully disclose their personal financial situation to each other, including details about assets, debts, credit history and any financial obligations to a former spouse. As well, if a person has been supporting another family member, for example, an adult child, he or she should clearly communicate this information to the new spouse. It is also a good idea for new couples to meet regularly, perhaps monthly, to pay bills together, discuss fears or concerns around money, discuss investments, etc. Individuals with children from a previous relationship may also need to discuss with their new spouse a strategy for paying for a child’s education. People with this type of financial commitment may consider using premarital assets, if possible.
Many remarried people prefer to keep premarital assets separate while also maintaining joint assets. If this is the plan, it is important to be sure premarital assets are not commingled with other assets and are titled solely to the individual owner. People in this position should also consider preparing a prenuptial agreement, with an attorney’s assistance. Although it may not seem necessary when love is in the air, in the event of divorce, such a document will provide clarity that can help minimize future conflict for the divorcing couple as well as any children.
Likely, most Massachusetts residents who are currently working through the divorce process cannot imagine finding a new partner. However, the fact remains that many divorced people eventually remarry. Individuals in a second (or third or more) marriage, especially if they are bringing significant assets to the new relationship, are smart to think practically and make the time and effort for financial planning to maximize the chances of success in their new union. Many people find experienced professionals, including a financial planner and a family law attorney, can provide valuable guidance during such times.