Money can complicate later-in-life marriages

Whether due to gray divorce or early widowhood, retirement planning increasingly needs to include a new partner. And often, it couldn’t come at a trickier time.

Remarriage rates among those 55 and older increased by 15 percentage points between 1960 and 2013, according to Pew Research Center.

For many older couples, these unions are taking place just as long-term pension decisions need to be made, Social Security checks are starting and estate plans are being drawn up.

So what should couples be talking about before heading down the aisle?

Think of it in three phases, suggests John Vento, an accountant and financial planner.

When he first meets with engaged couples, he goes through each set of finances separately and then presents a combined net worth statement for the couple, as well as an income and expense statement showing each partner’s total income sources and monthly expenses.

Use these numbers as the basis for how to split the common living expenses.

Next, consider the tax and benefit consequences of remarriage, he said. A new marriage could affect financial aid and scholarship eligibility, tax credits and Social Security survivor benefits, so it’s imperative to lay out all those possibilities, he said.

Finally, look at estate planning.

“This is where most older couples have the biggest concerns,” said Vento.

Adult children worry about their inheritance and how the marriage may complicate healthcare directives and plans, both advisers said. Estate documents such as trusts or wills and healthcare directives can give all parties some comfort on those issues.