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Beneficiary Arrangements- Review present beneficiary arrangements and concentrate on altering or changing them to replicate your new relationship.
One of the most devastating financial surprises which can occur inside of one's lifetime is debt acquired with remarriage. According to a recent study, over 40% of all marriages are remarriages. Most of us are only familiar with the statistics of marriages ending in divorce. When it comes to finances, counselling will also be beneficial for planning purposes, both for communication during the marriage, and the protection and preservation of assets.
Here are some financial worries to discuss prior to marriage:
* Assets, including savings, investments, real estate and retirement accounts
* Existing debts including mortgages, auto loans and credit cards
* Any remarkable obligations under a earlier divorce decree
* Unpaid taxes
* Credit reports and credit ratings
* Expected joint income and cost of living to maintain a joint household
* Pre-nuptial agreements or pre-marital trusts
* Inheritances and any beneficiary arrangements
* Wills
* Insurance
Credit- Obtain a new copy of your spouse's credit report from one or more of the major credit agencies. Credit reports will also be very revealing in regards to the individual's spending habits and financial management knowledge.
Second Marriages and Money
A great starting point is to go looking at each individual's assets and debts along with their credit reports and financial statements. This information will provide an initial insight into how each individual manages their respective financial responsibility. And, reviewing this information can facilitate a discussion of spending plans, savings, budgets and investments.
Insurance- Review your insurance wishes and concentrate on updating present policies to replicate your remarriage.
Joint Income and Cost of Living- Discuss your income and your present living fees to build a joint household budget and spending plan.
Wills- Remarriage is the optimal time to update wills and trusts, updating in many cases beneficiaries on accounts and insurance.
Debts- Both parties must reveal all existing debts, including mortgages, auto loans, unpaid taxes and credit card debt. If all debt is now not very disclosed, a spouse could inherit financial responsibility for the spouse's prior debts.
Obligations under a earlier divorce decree- Be sure to review the contents of any earlier divorce decrees for any remarkable obligations.
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According to a recent study, over 40% of all marriages are remarriages. Communication during the marriage, and the protection and preservation of assets becomes vital.
Unpaid Taxes- Although a new spouse should be protected against the IRS seizing assets to pay a spouse's prior debts, the possibility still exists.
Assets- Create and review a catalogue of all assets to check your new 'joint' financial position. Also, discuss the quantity of capital you feel relaxed saving and any person or joint savings goals.
Pre-nuptial or premarital trusts- If both party has considerable financial assets, a prenuptial or premarital trust is recommended. These documents work to keep certain property separate in the event of a future divorce, to avoid having specific property seized for prior debts of a new spouse and to prevent the disinheritance of toddlers from a prior marriage.
