Remarriage can be an exciting new chapter in life, but it comes with its own set of financial twists and turns. For those who have been through a divorce, understanding the financial implications of tying the knot again is crucial. By planning carefully and considering everything, you can set yourself up for financial harmony in your new marriage.
Estate Planning and Beneficiary Updates
Failing to update your estate plans and insurance beneficiaries after remarriage can lead to legal establishments and a lot of complications. Your first step should be to review and adjust your will or any trust documents to ensure your new spouse and any children are accounted fairly.
It’s also common for people to forget to update their beneficiaries on life insurance policies and retirement accounts. If your ex is still listed, they may receive money you intended for your children or new spouse.
Combining Finances With a New Spouse
Blending households often includes the blending of bank accounts, debts, and financial responsibilities as well. Discussing your credit scores, debt, and income disparities can help you to avoid future friction. It’s also important that as you share some accounts with your spouse, you should also have accounts just for yourself so you have some financial independence.
Tax Implications of Remarriage
Taxes are a very important area to consider and are often overlooked. Remarriage changes your filing status. Married couples often file taxes jointly which can often push your combined income into higher tax brackets. Remarriage can also impact your deductions for dependents, home ownership, or medical expenses.
Consult a Financial Advisor
Seeking professional advice is often one of the best ways to gain clarity throughout this process. A financial advisor can help you to analyze how remarriage will impact your overall financial situation, create a tailored budget for your new household, and plan long-term savings and investment strategies suited to your new goals.
Let me be your financial advocate as you navigate the divorce process. As a Certified Divorce Financial Analyst and CDFA® , I can help you avoid costly mistakes and educate you on current and future budgets, provide a financial road map, and help you understand what assets you have, what you spend, where you spend it, and more. Don’t let divorce set you back.
You don’t have to go through this alone.
Contact me today at 716-800-4290 to schedule your first appointment.
