Remarriage in Retirement: 5 Tips
Results of a recent poll shows that 57 percent of widowed and divorced adults have remarried and that today, more people are willing to tie the knot again compared to 50 years ago. Because of higher divorce rates and the aging of population, there is a growing number of widows and widowers available to remarry.
Finding love for the second time is a good thing, but preparing for a second or third marriage is different and can be far more complicated than the first time, especially if you're doing it during retirement.
1. Be transparent about money.As soon as you set a date for your wedding, begin talking about finances so that you can avoid marriage disputes because of money.
Money problems are one of the common reasons for divorce, and this is because some couples fail to be honest about their finances and spending habits to their spouses. If you're remarryingâ??especially during retirement when money is of utmost importanceÃƒÂ¢??make sure you and your partner will have a transparent discussion about money issues.
It's advisable to look at each other's credit reports as this show your financial history, diligence in settling your payables, and money management habits.
Discuss your priorities when it comes to spending, especially with providing financial assistance to grown children. Granting loans to children in need, gifting for special occasions such as weddings, and supporting a child's education expenses can all have an effect on your budget as a couple, so you need to talk about all of these ahead of time. Should anyone of you decide to financially assist a child or a loved one for whatever reason, you need to agree as a couple on the how much money to give and for how long. Is it a one-time gift or is going to be continuous support?
2. Consider a pre-nuptial agreement.The divorce process is very costly and if this new marriage doesn't work, you may not have the time to financially recover especially when you're retired. That's why pre-nup agreements are worth looking into for retirees who are planning to remarry.
Though it's awkward to bring up, a pre-nuptial agreement should be considered. Some couples leave it to an attorney to discuss it with them to avoid the discomfort of having to talk about it themselves.
3. Re-designate your beneficiaries.When you plan to re-marry, part of your to-do list should be changing the name of your beneficiary in financial plans and policies like your life insurance, annuities, and IRAs. This is a commonly overlooked step by most couples who plan to remarry. As a result, the money ends up being awarded to ex-spouses.
4. Evaluate your estate plan.To avoid disputes between family members over your estate once you've gone, you need to revisit your estate plan and make the necessary changes after you remarry. Inheritance and the transfer of your properties often cause conflict between members of blended families. That's why you need to be specific and make it clear who gets what, and ensure that neither your spouse nor your children would be left with nothing.
5. Look into long-term care insurance.Long-term care insurance provides financial protection for towering long-term care costs. Though you and your spouse have each other to rely on for care, you need to consider other expenses that may arise such as home modifications and paid care services. This can all add up and result to out-of-pocket payments and a huge dent on your nest-egg, and long-term care insurance helps prevent that from happening.
In retirement, deciding to marry again is a giant leap. Before you take the plunge, make sure that all aspects of your life are in-line with your decision to tie the knot again. The five tips discussed can help you prepare for remarriage the right way.