Baby Boomer Guide to Divorce, Remarriage, and Marriage Agreements
If you are one of the many older people who are divorced but are seriously considering remarrying, you may want to consider a prenuptial agreement.
Harry Margolis, author of “”, says: Line up ducks: Baby Boomer Generation Real Estate Planning Guide .. “
âWhen people get together or move in when they’re young, it’s probably about prenuptial arrangements, how they share the costs and what happens if they take different paths. It doesn’t require anything in writing, âsaid Margolis.
But when they met later, the situation was “very different,” he said. “They have a relation to certain baggage, or there is a certain story because ‘baggage’ can seem a little derogatory.”
In fact, they are likely to have property and children. âThey may have worked and saved for decades to accumulate what they have, and if they die, with a partner who actually claims their property. Maybe I would have done that, âsaid Margolis. “If it goes to a new Paramore and his children, not his own children, they can roll in their grave.”
In addition, children can have expectations. âIf their expected inheritance passes to this new person in their parents’ lives, they will not only be unhappy, but if the new person is much younger than their parents, they will have years or decades. You may not be very happy with the wait, âhe said.
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Of course, Margolis said ownership is king in the United States. âYou can do whatever you want with yours, you can even give it to your new partner, not your child,â he said. âThe problem is that it often happens unintentionally and unintentionally. Without a plan, property often belongs to the couple’s survivors and is passed on to their family.
In addition to inheritance issues, there are issues of incompetence and care, Margolis said. âPeople in their 70s, 80s and 90s are more likely to suffer from a lack of physical or cognitive abilities,â he said. “When that happens, what’s already complicated can get even more complicated.”
Has the new partner made a commitment to improve, for better or for worse? Is he ready to assume the costs of taking care of and taking charge of a sick spouse or partner? How is care coordinated with this person’s children?
âIn these situations, communication becomes difficult and often leads to misunderstandings and conflicts,â explains Margolis. “At least part of this can be avoided if our partners plan ahead and discuss what to do if they are unable to.”
In short, he said it can be complicated when the elderly get together. âMarriage agreements in the event of marriage or cohabitation contracts in the absence of marriage can help avoid later difficulties,â said Margolis.
Others agree. “Due to the very high divorce rates, prenuptial agreements should be the norm for people with significant wealth to get married,” said Sarah Carlson, chartered financial planner at Fulcrum Financial Group. “Often times that is not the case.”
For her part, Ririva Silev, president of the Divorce Financial Planners Association and certified financial planner for wealth protection management, said conversations about the prenuptial agreement take into account legal changes, divorce risks and legal consequences. real estate considerations. Make prenuptial agreements a tool to strengthen relationships through marriage.
And Kelly Pedersen, founder of Caissa Wealth Strategies, said prenuptial agreements don’t have to be scary or threatening. “They aim to protect you as much as they protect your property,” she said.
Additionally, she said both partners could benefit depending on how the marriage contract was drafted. âFor example, if you fall into a situation where your future spouse’s name has significant assets, a prenuptial agreement will help you understand what it will look like when you are finished with your marriage,â she said. .. “He can elaborate on what you take with you, so you can live comfortably knowing that there is almost nothing left.” “
Pedersen also said it’s generally recommended to use prenuptial agreements to consolidate assets and income, especially for mixed families.
Also, keep in mind that the prenuptial agreement supersedes most other documents and cannot be canceled without going through a lot of hoops, Pedersen said.
Mr Pedersen also said remarried people should be protected not only in the event of divorce but also death. âIt’s easy to get carried away with what happened in the divorce and forget about the issue of death,â she said.
Here are some of the things you can achieve with a prenuptial agreement, according to Margolis:
- This forces a debate on financial and care issues. Relationships often drift if you don’t have to put your plans in writing. Reaching a written agreement forces conversation and discussion on these important issues.
- This brings up new problems. Placing a pen on paper often causes people to think about issues and details that would otherwise be unthinkable.
- It is a reminder. No one’s memory is perfect, and it is increasingly evident that our memory will be altered by subsequent events and influences. Seeing what has been written for years can surprise the party and reveal different memories.
- It is a proof of intention. Children often have different ideas about what is good for them or what they intended to do. Written proof of what the parent was thinking can calm the child who is against the plan when it can be shown that the plan is in accordance with the parent’s wishes.
âAnyone who has a prenuptial agreement or a cohabitation agreement should understand that it can be changed at any time,â said Margolis. âIt was installed when the two were moving together, but if they’ve been together for a long time, what was initially appropriate may not make sense after 15 years. You need to check it and adjust it if necessary. “
Other financial planners have provided additional points to consider.
For example, Sallie Mullins Thompson, certified financial planner and director of the company that bears her name, said:
- Each state has specific laws regarding child / spousal support, property division and taxes. No agreement is required if you just want to do what the state has already ordered. Therefore, it is essential to know what the state law covers and what it does not.
- It is generally more beneficial and efficient to use mediation first to make decisions on the terms of the contract before drafting the document, rather than negotiating a document that has already been drafted.
- Transparency from both parties regarding all assets, income and debts is important and is the key to creating a binding prenuptial agreement in which both parties can coexist.
- Cohabitation agreements are very important, especially if the parties jointly own property and plan to have children. The agreement can protect the rights of all concerned.
- It is wise to place specific property planning documents such as POA. When children are involved, guardianship specifications are very necessary.
And Carlson provided these six takeaways:
- Death is different from divorce. Couples may express their intentions differently than at the time of divorce. Marriage contracts can take this into account in individual asset contracts. Your will can reflect different asset allocations, and you can name your partner’s beneficiaries for life insurance, pensions, and retirement assets outside of your property.
- Clear communication is the key. Before hiring a lawyer, couples should discuss what they want to keep separate and why. Determine which assets are intended to be included in this agreement.
- Review the documentation annually. The situation is changing. You can renew your contract to meet your current needs.
- Marriage contracts usually cover the assets of your marriage, but what about the income you earn during the marriage? Some couples also want to treat their income separately. If so, talk about it and put words in your document to manage it.
- It is possible to have a common good that you choose to mix, such as a house or a gift given as a couple. These common goods can be excluded from these other contracts.
- Make sure your assets are listed in a way that supports prenuptial documents. If the asset is segregated but shared with the trustee, it will be mixed. Make sure the asset is reliable or listed as the sole owner to keep the title clean and avoid further lawsuits.
Additionally, Jeff Farrrar, Certified Financial Planner at Procyon Private Wealth Partners, said prenuptial agreements are a good idea in many situations. However, every person needs a lawyer and full and complete disclosure of assets and liabilities. He also recommended drawing up a contract “months and months, as long as possible before marriage”.
He also warned that keeping assets separate (inheritance, debt, ownership of sole proprietorships, etc.) from what was brought into the marriage could be a problem and offered the following advice: Did it. During and after the wedding. “
A Boomer’s Guide to Divorce, Remariage, and Prenuptial Agreements Source link A Boomer’s Guide to Divorce, Remarriage, and Prenuptial Agreements