Creating a financial checklist when getting remarried

On Behalf of | Sep 1, 2021 | Property Division |

Many learn from past experiences. For some Colorado spouses, this means learning from a past marriage and using that knowledge when entering and even exiting a subsequent marriage. Divorce is not easy. It can take a toll on one’s finances and emotions; therefore, it is important to consider what steps are essential when either entering another marriage or going through another divorce.

Financial concerns when remarrying

Getting remarried could mean facing all the same issues and struggles that arose in a past divorce. Therefore, it is important to use that information before and during a subsequent marriage. No matter a person’s age, career or education level, it is important that spouses have the money talk. As this can give a clear picture of the finances and debts involved. Therefore, one should consider the following checklist items.

Financial checklist

The first item on the list is to have a full financial disclosure. This means each partner giving the lowdown on their assets, property and debts. This not only give a current financial picture but a future one as well. This can also help understand their retirement planning currently in place. The next item is to designate what will remain separate property and what will be considered marital property. This is followed by the third item, which is a prenuptial agreement.

Reviewing insurance coverage is the fourth item on the list, and this helps uncover any financial burdens that could arise if a major life event occurs. The next item is to update beneficiaries on one’s accounts and policies, as this could result in conflicts with a will or having the wrong person obtaining these funds. The sixth item is to update an estate plan, as it should include the new spouse. Finally, joint financial goals should be discussed and understood, whether it is to start a business or enhance their lives.

Handling property division

Property division is a contentious divorce issues, making it important for spouses or soon-to-be spouses to consider ways to reduce the disputes surrounding this process when and if it occurs. Whether it is through a marital document, such as a prenup, or updating an estate plan, it is imperative that one understands their situation and rights involved in the matter.