Remarrying? Here are financial considerations to keep in mind before saying ‘I do’
You may want to consider some financial issues before walking down the aisle again.
When it comes to tackling those financial issues around remarriage, financial advisors recommend couples look at the past — for example, how each person handled finances, and their pre-marital liabilities and assets — the present (e.g., new benefit options) and the future — how, for instance, they’ll handle finances as a unit or protect themselves and loved ones in case of death or divorce.
“Financial communication is an essential best practice to achieve financial success in a relationship,” said Rob Wermuth, CFP and partner with Legacy Planning, based in West Chester, Pennsylvania.
He recommends couples have regular monthly meetings to discuss their finances in a structured way. The meetings should be from 60 to 90 minutes long, away from home and its distractions.
An agenda should be followed, he said, covering financial goals, spending (budget versus actual), target cash balances needed to pay bills, and assignment of tasks for the next meeting (e.g., call insurance agent, review investments, etc.)
Clients have been enthusiastic, Wermuth said. “They respond with more energy, more follow up, and more accountability to their advisor team,” he said, adding that remarried clients “want to be empowered to grow their relationship because, in their previous marriages, money was one of the factors that drove them apart.”