For older couples contemplating remarriage following a divorce, it is important to think through the financial, legal and other issues associated with marrying later in life.
Some older adults may be in their peak earning years when considering remarriage, so it is important to consider what your tax burden might be if you decide to remarry. For example, if you and your new partner are both high earners, you may end up owing more in income tax when married than you would collectively as single filers. It is a good idea to complete a pro-forma return to get a sense of how your income tax burden might change when you marry.
Your current estate plan will also be affected by a remarriage. Your new spouse will have some built-in inheritance rights, which may impact your adult children from a previous marriage. You will want to work with your new spouse to ensure that your assets are distributed according to your wishes. This may include provisions for a family home to be passed down to your children or having your new spouse sign over their rights to a retirement account.
As an older adult, you and your soon-to-be spouse, are likely to have more assets, but one or both of you may also have debt or poor credit. It is important to be transparent with one another about your financial situation, so it will not impact your ability to make a new start.
People of all ages remarry. However, if you are getting married very late in life, long term care should be a consideration if you do not have long term health insurance already or do not have the finances to pay for it on your own. The cost of long term car is significant and, as a married couple, you may have to spend down your collective assets before you can qualify for assistance. It is worth considering what is in your and your partner’s best interest regarding marriage when considering the costs associated with long term care.
With the divorce rates for people 55 and older at its highest, it follows that many will consider remarriage later in life. Before you take a second or subsequent walk down the aisle, it is worthwhile to first consider the financial, legal or other issues you may face.
A prenuptial agreement is a must for those marrying later in life. Prenuptial agreements can address what happens to your interests if you divorce or die. A prenup can also clarify your intentions when it comes to passing down assets to children from a previous marriage. Because many who marry later in life have more assets to consider, a prenuptial goes a long way to protect you in the event of divorce.
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If you are interested in a prenuptial agreement, whether you are marrying for the first time or considering remarriage, contact the Lake county (IL) Family Law Attorneys of Schlesinger & Strauss LLC for more information about Illinois prenuptial agreements today.