Financial Issues to Consider in a Second Marriage

 Posted on April 28, 2022 in Family Law

The old expression, “once bitten, twice shy,” probably sums up how many people feel after going through a divorce. Couples may enter a first marriage without considering how life’s realities can affect a relationship. Finances, children, in-laws, and jobs are all issues that can overshadow the romantic side of marriage.

People who go through a divorce typically have a much more realistic view of what a second marriage may hold. This is especially true for those who have gone through a messy divorce — one which may have involved drawn-out negotiations over marital assets and other finances. Therefore, when a divorced individual considers remarriage, there are several questions they should discuss with their potential spouse. Starting out on the same page can go a long way in avoiding another trip to divorce court. The following are some important issues to address before a second marriage

Will You and Your Spouse Keep Assets Separate or Mesh Them Together?

If you both have children from prior relationships, it may be wise to keep your assets separate. This will help ensure that there is no question regarding what your children receive if you or your spouse pass away. One way to clearly define how you will be sharing assets, or keeping them separate, is by having a prenuptial agreement drawn up before your marriage.

In addition to a prenuptial agreement, it is also smart to make sure your estate plans reflect what your wishes are for your assets in the event you pass away before your spouse. Your estate plan document can specify that any assets you have will go to your children upon your death and not your spouse.

Even if you and your spouse agree that each other’s assets will go to the other’s children, money has a funny way of bringing out the worst in people. Without an estate plan in place, you have no guarantee that your assets would not eventually go to your spouse’s children.

Where Do You Each Stand Financially?

Not only should assets be revealed, but if either of you has heavy debt then this is the time to disclose that information. Your spouse could have significant debt that could end up jeopardizing your assets and financial security once you are married. 

What You Will Do With Property You Each Own When You Marry?

If both of you own your own residence, filled with furniture and other household items, then a decision needs to be made about which house you will live in once married. Additionally, what will happen to all the items that may be duplicates?

Are You “Financially Compatible?”

Are you a saver or a spender? Do you both have the same financial goals? Not being on the same financial track can cause a derailment of the marriage in the future.

Contact an Austin Complex Divorce Attorney

If you are considering a second marriage, call Powers and Kerr, PLLC at 512-610-6199 to schedule a free consultation with one of our Austin family law attorneys. We can help you decide what type of steps you can take to protect your assets, including drawing up a pre-nuptial agreement.

Source:

https://www.forbes.com/sites/jonathanshenkman/2021/08/20/second-marriage-financial-checklist-7-planning-items-to-consider/?sh=7d0dceb93182