Financial tips for Remarriage|Family Law attorney- Kane County, IL
With divorce becoming such a common occurrence in American society, rates of remarriage, in turn, have surged as well. It seems as if everyone is looking for a second chance at love – or even a third or fourth chance, in some cases. As a recent Detroit Free Press article points out, however, with remarriage comes financial issues that can have serious consequences for couples looking to remarry.
First, if you receive alimony from your former spouse or Social Security benefits based on your former spouse’s records, these benefits will end when your new marriage begins. If these funds make up the bulk of your monthly income, then you and your fiance will have to decide whether you need to replace that income or if you can do without. Keep in mind, however, that forgoing that income may leave you without any income at all in the event that your remarriage doesn’t pan out as well as expected.
Next, if you have a child in college or looking to go to college in the near future, your new spouse’s income will factor into the calculation for financial aid. If your new spouse makes a substantial income, and you were relying on financial aid to pay for your child’s college education, then you may have to rethink your funding strategy. Your new spouse’s income very well could make your child completely ineligible for financial aid.
As with any marriage, the engaged couple should sit down and have a frank discussion about income, debts, and credit. You may soon find out that you don’t quite see eye to eye on handling finances, that your spouse-to-be has bad credit or a ton of debt, or that you don’t always agree on how to prioritize the spending of your income. While many financial planners insist that keeping finances separate is the only way to go, financial expert Dave Ramsey disagrees that spouses should keep separate accounts, because making financial decisions together results in a stronger marriage.
As you plan for remarriage, you also may want to consider a prenuptial agreement. This important legal document can help you and your fiance protect your premarital assets, shield one another from premarital debts, and make provisions for children that either or both of you have from a prior relationship. For more information about how a prenuptial agreement or other types of financial planning can impact your impending marriage, consult with your family law attorney in Kane County, IL, today.