The last thing anyone wants to think about when getting married is what happens if it does not work out. This can be even more true for those who are getting remarried. However, if you are getting married later in life – what could be a second or third marriage – you have to worry about how a divorce could impact your financial future.
There may be more financial strain when you marry for the second time than there was when you entered your first union. This is because you are probably coming into the relationship with more money than you had in the previous one. You could also have older children and need to think inheritance.
You have ways to protect your money while also protecting the financial future of your children and new spouse. These steps can be especially necessary if you have complex assets like your own business or 401ks
Consider a prenuptial or postnuptial agreement
One of the most essential tools available to you is a prenuptial or postnuptial agreement. These documents cover assets ranging from property to finances that you bring into the marriage along with any you may acquire during it. A prenup or postnup will spell out what will stay separate and what you and your spouse will share.
These documents can help make it easier for your children to inherit the assets you want them to have by keeping sole ownership of them. If you wish for your children to receive most of the assets you owned before getting remarried, you can have your spouse waive their rights to it as part of these agreements.
While you draft a prenup before you get married, it does not hurt to reaffirm everything you and your partner agreed to in that document with a postnup.
Peace of mind for your fresh start
Getting married for a second time can be a blessing. But if you do not protect your money and assets, especially when they are complex, before saying “I do,” you can be setting yourself up for failure. Working with an attorney to draft prenups or postnups will give you peace of mind as you enter this new stage of your life.