Couples deciding to take another stab at marriage have a lot of additional concerns. Since there is likely some carryover from a prior marriage in the form of children and financial obligations, there is an extra incentive to do some further pre-marriage planning.
The mention of a prenuptial agreement may elicit a groan, but when it comes to a second marriage, it makes sense to draft one. A prenup is simply a legally binding agreement that sets forth the terms under which the couple intends to marry and live together. It can cover a multitude of topics, including estate planning, caring for children from a first marriage and the comingling of finances. Consider these factors before saying “I do” a second time.
Children from a prior marriage
If this is a second trip down the aisle, there is a chance of having children from the first marriage. Both parties may have children, and no matter what age they are at the time of the wedding, their future care needs planning.
A prenup is a way for the couple to come to an agreement as to how much money to leave to children in an estate plan. If a child later needs to contest a parent’s will, the prenup may serve as evidence as to the parent’s previous wishes.
Because a second marriage most likely occurs later in life, there is a decent chance that the couple has worked for many years and accumulated assets. A prenuptial agreement sets out the groundwork for who will contribute what to the marital pot during the marriage. It also acts as a way for the couple to establish what assets will remain as sole and separate property. Should a divorce occur, a prenup makes dividing the marital property easier and more effective.
Marriage is an exciting but understandably stressful time. When a couple carries things with them from a previous marriage, the second one may take more long-term planning.