Does it make financial sense to marry a second time?

Recognizing that average life expectancy has increased over time, the possibility that you might be considering marriage more than once in a lifetime also becomes more of a reality. Many older clients faced with choices regarding late blooming relationships — whether from death or divorce — are confronted with a decision, should they remarry or should they continue the new relationship without marriage.

Religious and personal beliefs can enter into it. So can family ties, and the financial effect or remarrying or not. Without competent financial and legal advice it is difficult to make an informed decision one way or the other.

Financial Planning. Before deciding whether to merge finances, those who are considering remarriage should conduct a thorough review of their financial plan including assets and income. Marriage brings with it some responsibilities and without a full legal and financial review there could be surprises.

Prenuptial and Postnuptial Agreements. Especially for those considering remarriage later in life who have established a business or accumulated assets in their own name, prenuptial and postnuptial agreements are valid considerations. This is especially true where either party has children by a prior marriage. A “prenup” is entered into before marriage and a “postnup” after. Marriage does not necessarily end written agreements and they can be continued throughout the marriage.

Note that if one consideration is whether assets can be insulated from Medicaid spenddown, the government does not recognize either prenup or postnup agreements in connection with this program but there are some protections for spouses both in the Medicaid rules and in Medicaid planning. Medicaid does not pay for personal care in Pennsylvania or to independent living.

In very basic terms a well drafted prenup or postnup would typically (although not always depending on the circumstances) state that each party has acquired certain assets that belong to himself or herself alone, that each party is free to designate assets to their children, and that neither will claim against the other’s estate. It also addresses the status of assets acquired during the marriage and lists assets acquired before the marriage. There needs to be full and fair disclosure. Other than in the Medicaid healthcare field as described above Pennsylvania does recognize valid prenup and postnup agreements.

Some advantages to being married. If you are married and your spouse has healthcare insurance through work or