5 Money Tips for Couples Marrying after 50
Are you approaching retirement and thinking about tying the knot either for the first time, or again? If so, congratulations.
Also, there are a few things that you’ll need to know about marrying after 50, particularly when it comes to financial matters. It’s not quite as simple as getting hitched when you’re younger and have little or no financial portfolio, monetary obligations or dependents.
Consider these five crucial tips for anyone considering getting married after 50.
You Need a Prenup When Marrying after 50
One of the first considerations you’ll need to make when marrying after 50 is the prenup. If you think that prenuptial agreements are only for the wealthy or only for the young, it’s time to rethink things.
As mentioned on CNBC, a prenup can help ensure that there are no hassles or holdups if your marriage falls apart, or if your spouse dies (or if you die).
A prenup is actually one of the most crucial tools you have for ensuring that you keep what you bring into a marriage, which is an important consideration when you’ve had a lifetime to build assets.
This is particularly true if you’re planning to leave assets to children from a previous marriage and have a stepfamily once you tie the knot again.
Know More about Social Security
Social Security can become a little tricky once you remarry and you’re approaching retirement age.
For instance, if you and your previous spouse were married for 10 years or more and you don’t remarry, your spouse is eligible to claim your Social Security benefits (or a portion of them). However, if you remarry, that eligibility disappears.
What many people don’t realize, though, is that if the second marriage also fails, then the first ex-spouse may be eligible to reclaim those original Social Security benefits.
Make sure that you’re aware of all the potential wrenches that Social Security can throw into the works before deciding that marrying after 50 is the right thing for you.
You Need to Consider Estate Planning
Estate planning is an essential consideration for pretty much anyone at any age, if there are assets involved. Yes, your will can spell out your wishes, but that is often not enough.
What if you pass on and then family members contest your will? It could be held up in probate for a very long time. Moreover, if there is no agreement reached between your heirs or the contesting parties, your assets could be ordered to be sold by the judge.
Then where does that leave your legacy?
When you’re marrying after 50, there’s the very real chance that you’ll end up with a blended family, as well as children with your original spouse.
This creates a very sticky situation when it comes to the end of life planning, and ensuring that you have everything lined out with estate planning tools can help ensure that it all goes smoothly (and to your wishes).
Honest Discussion of Financial Matters
It’s crucial that you and that special someone are honest with one another about financial matters. If you have something of a checkered past when it comes to finances, be upfront and expect the same thing of your soon-to-be spouse.
Without an open, honest discussion of financial matters, you’re going into a long-term commitment with your eyes covered. You’re “flying blind” as it were.
If you’re over the age of 50, you have less time to prepare for retirement, and poor financial decisions by your partner, even years in the past, could wreak havoc on your ability to plan for those golden years.
In fact, you might find yourself forced to keep working well after retirement age because of a faux pas made in your spouse’s youth. That’s not a position in which you want to find yourself.
Open a dialogue about your past financial mistakes and your plans for the future, and expect your would-be spouse to be honest and open, as well.
Debt Is Important
Each of you will bring different assets and liabilities when you’re marrying after 50. That’s to be expected.
However, be aware that while a potential spouse’s poor credit won’t affect you immediately, it will eventually. When you (or your spouse) pass away, that debt will transfer to them. Depending on your estate planning steps, your retirement money might not, though.
That would leave your spouse in a desperate situation. It is crucial that you and your soon-to-be spouse sit down and discuss your ongoing financial obligations, including debt.
It is also a good idea to pull a copy of your credit reports and look over them together. This will also provide a chance to dispute anything on the reports that might be erroneous.
When everything is said and done, marrying after 50 can be incredibly exciting.
However, remember that you both bring things to the marriage that might not be apparent, from underlying health conditions to hidden debt to foreclosures and bankruptcies that will affect your married life.
It is also crucial that you use estate planning tools to ensure that your assets are allocated according to your wishes after your death, particularly if you have a stepfamily.
With the right planning and a dedication to open, ongoing, honest communication, though, your marriage can have the best chance of success.