Remarriage is common. People often find love again after divorce or loss, and enter second marriages. But it's important to consider the financial side and protect both of your financial interests. Widowed men, in particular, often move on quite swiftly, remarrying
within months of losing their spouse.
Financial Aspects of Second Marriages
Remarrying quickly might be driven by emotional support, companionship, or stability. However, it's crucial to be mindful of your financial wellbeing in these situations. A hasty remarriage might mean that comprehensive financial planning hasn’t been fully addressed.
The Practical Side: Prenuptial Agreements
When entering a second marriage, a practical step is to consider a prenuptial agreement. It may not seem romantic, but it's a way to protect your assets. A prenup outlines how assets, property, and finances will be handled in case of divorce, preserving your financial
security.
It is important to note that prenup agreements are not legally binding in England and
Wales but have been regarded by the Courts as persuasive and even decisive in some
cases.
Updating Your Will and Estate
One common oversight in second marriages is neglecting to update wills and estate planning documents. On marriage a Will is revoked! Therefore, any Wills that are already in place, unless written with the new marriage in mind, will be ignored and laws of intestacy will apply. After a remarriage, please revisit and update these documents to align with your new family setup, values, and financial goals.
The Value of Independence
While sharing financial responsibilities is essential, both partners should maintain some financial autonomy. Having separate bank accounts, investments, and retirement accounts can act as a safety net if the unexpected occurs.
Life Insurance and Beneficiaries
Take a moment to review and update your life insurance policies and beneficiaries after a second marriage. Neglecting this could lead to unintended consequences in case of unforeseen events.
Honest Communication
Open and honest communication with your partner is vital. Discuss your financial goals, expectations, and how you both plan to manage your finances. It might be an uncomfortable topic, but addressing financial concerns directly can prevent future
misunderstandings and conflicts.
Plan for the Long Term
While focusing on the present is easy, planning for the long term is equally important. Second marriages often introduce complexities, especially with blended families. Financial planning should prioritise the wellbeing of dependents, as well as both spouses. Consider
consulting a financial adviser to ensure your financial arrangements are fair and sustainable.
Safeguarding Your Financial Future
The emotional journey of a second marriage can be exciting and fulfilling, but don't overlook the financial aspects. Address financial planning, update estate documents, and have open conversations with your partner to protect your assets, secure your financial future, and cherish your newfound love and companionship.
Entering a second marriage should prompt proactive steps to secure your financial interests. Love is wonderful, but protecting your financial wellbeing is equally wise, ensuring your assets remain secure in your second marriage.
Proper planning is key, as we have sadly seen several instances where the existing children have been disinherited in favour of the new spouse. This has never been done on purpose, but either through poor planning or relying on others to “do what is right”.
If we can help with any of the matters mentioned in this article, please get in touch to book your appointment.
Financial advice appointments are held either in our offices in Polegate, East Sussex, or virtually.
Will Writing & Lasting Powers of Attorney are not part of the Quilter Financial Planning offering and are offered in our own right. Quilter Financial Planning accept no responsibility for these aspects of our business.
