As some Arizona couples have discovered, remarriage often leads to concerns over finances. About 40% of recent marriages involve a spouse who has been married before. For older adults, the number is higher since two-thirds of Americans ages 55 to 64 have been previously married. Regardless of age, a previously married spouse can bring a lot of financial assets and baggage.
The main issue with finances and subsequent marriages is how to deal with each partner’s assets, particularly when they have children they might want to provide for. While a previously married spouse might care very much for their new partner and wish to take care of them as well, their loyalties could be split. To deal with this, analysts recommend couples sign prenuptial agreements that clearly outline what they want to do with their money, what assets they might want to keep separate and even how they want their assets divided after they die.
Additionally, a spouse who wants to provide post-death support to a new partner but wants their assets to pass on to their children after their spouse’s death can set up a qualified terminable interest property trust (QTIP). They should also review their estate plan and update all beneficiary forms for their various accounts and insurances. Protecting finances after divorce begins during the property division period and takes planning and preparation.
During divorce and planning for life post-split, it might be beneficial to consult with a family law attorney who can provide guidance, advise and representation. The lawyer might also help their client to make decisions that will protect their interests during and after the process.
