Many people who get married for the second or third time may well be at a point in their lives when they have amassed a reasonable set of assets. They may also have grown children and potentially even grandchildren.
These are just some of the factors that make it essential for partners to consider a strong prenuptial agreement and estate plan important things to address prior to walking down the aisle.
Prenups help during marriage and after death
As explained by Forbes, a couple may use a prenuptial agreement to outline how they will handle their financial matters during their marriage. This may include what assets remain the separate property of each person and which assets may become marital or comingled.
A prenup may also outline wishes for how to finance each person’s potential need for long-term care or what should happen to a home brought into the marriage by one partner after that person dies. A good marital contract can be a valuable adjunct to an estate plan.
Estate plans preserve assets for multiple parties
According to CNBC, a blended family naturally brings potentially conflicting interests to bear when it comes to what happens to assets or belongings after a person dies. A simple will may not be able to effectively provide for a surviving spouse and children from a former marriage. Given this, couples may benefit from investigating trusts designed to accommodate these various parties. Updating beneficiaries for retirement accounts, life insurance policies and other assets should also be part of updating an estate plan before a new marriage.