Second marriage money tips
If you are making marriage plans, talking about money is imperative. This makes sure you both understand the implications when entering into a second marriage or common-law relationship.
Marriage brings many things to mind, such as commitment, family values, goals, aspirations and dreams.
Most newlyweds, however, usually don’t put money talk at the top of the list.
One thing is for certain, marriage, be it the first or second time around, means there are many adjustments to make from a financial perspective.
Marriage changes your lives from your wedding day forward.
Common topics couples should discuss are how you own property, consideration of adult children, naming of beneficiaries, life insurance and what happens to your pension.
Financially and legally, marriage binds you and your partner.
So, how much do you really know about your partner and their money habits?
Here are seven questions to discuss with your partner before taking the plunge into a second marriage or even living together. How much do you earn? Do you have any debts? If so, how are you paying it off? How did you accumulate this debt?
With respect to your career, where do you see yourself in five and 10 years? Are you saving for retirement? Do you consider yourself a saver or a spender?
If you have not yet had any conversations or discussions about money with your partner to be, there might be some surprises.
It is amazing how much you can learn about a person by discussing these seven questions.
While none of the questions are particularly difficult, the answers play a big part in how you, as a couple, deal with your money.
Money forms a big part in making this commitment and your marriage flourish and grow. Are you planning on buying a house? Do you own property already but wish to purchase a new home as a couple?
Does one of you own a business and need some capital to hire new staff or move your premises?
Are you bringing minor or adult children into your new home?
Are adult children attending university and halfway through getting their degree?
As you can see, all of these questions require decisions that inevitably involve money.
Some decisions have income tax implications while others have emotional impacts.
How you and your partner deal with money is going to have an impact on your relationship.
Having a spouse open to discussing money can bring you closer to your goals and dreams.
If you and your future spouse have not had time to talk money and handling your combined finances, then now is a great time to start.
Having common goals and dreams is all fine and well.
However, you may find there are basic differences in how you both handle money on a day to day basis or deal with your financial affairs.
Knowing how your spouse deals with money is a major factor in your relationship.
What does marriage mean to your financial picture? How you own property is crucial. Planning for your new spouse may be at odds with your planning for adult children from a previous marriage. Revisiting your will is also crucial. Should you pass away suddenly, your surviving spouse may face a situation not foreseen by you or your children.
Don’t assume everything can work out on its own, given a little time.
Second marriages require thoughtful discussion and planning if you want to ensure your new spouse and children from a prior marriage are well looked after.
Remember rules differ from province to province so if you have just moved to B.C. from elsewhere in Canada, take the time to visit a lawyer to review and update your wills.
Planning for your marriage and your future is exciting.
Make sure money and finances are included in your discussions before you tie the knot.