9 Financial Tips for Baby Boomer Remarriages
As baby boomers venture into the retired life, many are not just calling it a day. Today’s retirees are looking at their retreat as a second chance to fulfill their happiness, and many are finding that in a new marriage.
Because boomer nuptials come later in a well-established life and are typically not their first marriage, there are often more complicated financial issues on the table. Couples should consider the following baby boomer checklist and financial advice to make their nuptials adventure a stress-free endeavor:
1. Talk with families
Couples should be aware of the sensitivity around their family relationships - often grown children have become familiar with their family lifestyle and will have concern welcoming a new person.
His, hers or ours? More money acquired over a long life could mean more complications. It’s important to discuss all assets and define which will be separate and which will be co-mingled.
Retirement benefits are a major concern, as they could be the main source of income for the household. Couples should discuss what benefits they have invested in and whether or not to add to the other’s plans, such as IRAs and 401Ks.
4. Estate Planning
Retirement is a good time in life to create a will and, while some may already have one created, the process can be complicated when entering into a new marriage. Couples will benefit from discussing what provisions will go into the will and having conversation with family members to establish expectations to alleviate strain. Contact an estate planning attorney for assistance.
5. Separate Property
If there is a concern about bringing assets together, it is important to manage property separately so that it cannot be deemed community property in a divorce or separation.
Couples should be assessing who they need to protect and what policies need to be purchased in order to support their loved ones once they are gone. Evaluating what incomes they bring to the household and determining how much life insurance is necessary to replace those amounts will ensure loved ones are protected.
7. Support Orders
After a previous marriage, it’s common for these boomers to have alimony and spousal support payments that are coming in or going out. Once remarried, payments may stop coming in, but payments going out to former un-remarried spouses and children most likely will still be expected.
8. Social Security Benefits
Couples should be aware that they could lose some social security benefits they were once entitled to upon entering a new marriage. Once remarried, you generally cannot collect benefits on a former spouse’s record unless the later marriage ends (whether by death, divorce, or annulment).
9. Prenuptial Agreements
If there are issues that need to be resolved contractually before marriage, then a prenuptial agreement may be appropriate. For those entering a second marriage, considering a prenuptial agreement is especially important given the complications these unions can involve.
- Estate Planning