Money Talk With Slater

Making Money Across the Board

The Financial Advantages and Disadvantages of Seniors Getting Married (Part II)

There’s a lot to discuss when you marry later in life. 

Key Takeaways

Two people who want to marry later in life have to discuss assets, finances, housing, retirement, and more before tying the knot.

When linking finances, it’s best to be open about everything from your degree of indebtedness to retirement plans and investment strategies.

Be sure to decide your filing status, update your tax information, and update your name and benefit status with Social Security.

Do estate planning to see that your families’ financial needs are satisfied after you die, and update beneficiary information for life insurance policies and wills.

Combining Finances After a Marriage

Older couples have had more time to get accustomed to their own money management styles and personal habits. They’ve also had more time to garter significant assets. This can make it difficult to merge finances, particularly when one partner is thrifty and the other likes to spend. Or, when one partner has way more resources than the other.

If either partner has young children from another relationship, this will also introduce issues to discuss like the receipt or payment of child support and probably alimony. Even when there are adult children, there are problems of inheritance to make clear.

Some smart planning can help you simplify this transition. Below are some suggestions you can use before walking down the aisle:

  • Discuss each other’s credit histories by looking at credit scores and reports and scores.
  • Decide each partner’s indebtedness and your personal comfort levels with debt.
  • Reach an agreement about how to share bills, savings, and paychecks.
  • Create one joint banking account and an individual account for each partner
  • Decide who will be the primary breadwinner or if you will both be contributing more or less equally.
  • Discuss investment styles and strategies like whether you are conservative or aggressive.
  • Figure out what savings level you’ll want to have as a couple.
  • Discuss what you vision for retirement if you aren’t already retired.
  • Talk about where you plan to live, present and the future.

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