If you are thinking about remarriage after a divorce, there is much to consider. Second marriages have become far more common in recent years, as divorce rates and life expectancy both increase. While pursuing a life with someone you love is an exciting endeavor, especially after the initial devastation that a divorce can cause, there are a few things to reflect on before you take the plunge for a second time.
While you may already have a will or an estate plan in place, how will your new spouse impact this existing plan? You may have children that are being accommodated for by your will or various trusts. They may be adult children, or they may be minors, but either way you surely want to provide for their future. Yet your new spouse may not be financially secure and may need to be provided for as well. One solution is to set up a trust that would provide for your new spouse until their death, at which time the trust would be terminated and the funds allocated to surviving children.
Prenuptual agreements are often important when considering a second marriage. After all, while you may not want to think about it at such a joyous time in your life, a large percentage of second marriages do unfortunately end in divorce. After going through the process of divorce once already, you may be more likely to prepare for this worst case scenario, which will save you time and money in the future.
In addition to accounting for the monetary recompense in the event of divorce or death, a prenuptial agreement can also plan for how money is spent during your new marriage. With a second marriage, this may be important as often times one or both parties have obligations apart from their new spouse, including children and financial responsibilities related to a prior marriage. Financial allocations that provide assistance to children or family members can be negotiated and agreed upon, since any debt incurred will ultimately impact the joint finances of the couple.
While a second marriage holds promise for a happy future, it is important to be prepared and have an estate plan in place that provides for the people who are important to you, from your past and your future.