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W HETHER THIS IS the first marriage for one of you, or both of you are vet- eran marrieds, it's likely that each of you is entering your new partnership with assets much greater in value than toasters and vacuums. When it comes to another trip down the aisle, it makes sense for both of you to be forthcoming about several issues and to consider a pre-nuptial agreement (PNA). Full Disclosure of Credit Histories and Ongoing Debt Be open about credit ca rd debt. Disclose credit judgments or bankrupt- cies. Be honest about what you owe on mortgages or for parental care or medical bills. Sometimes, marriage can make you a co-debtor. Extent of Total Assets Itemize real estate, homes, incomes, pensions, savings, cars, collectibles, business interests, investment portfo- lios, life insurance policies, and so forth. If you live in a community property state, you may want to title specific assets in your name or jointly with your child, not with your new spouse. Your attorney can advise you on the best path here. Financial Support of the Marriage Determine whether you will both keep separate bank accounts or create joint accounts. One compromise is that each of you contributes to a joint account for the new marriage's expenses and retains a separate account for individual discretionary or obligatory expenses. Obligations from Previous Unions Discuss your alimony or child support payments and when they end. Do you have preexisting business debts that you incurred with a former spouse? Are either of you required to provide insurance coverage for an ex-spouse? Does a previous spouse have legal claim to your employer-sponsored retirement plan savings? On the other hand, if you receive assets from a former spouse, will remarrying stop the receipt of a particular inheritance or discontinue financial consideration? Often, if a woman remarries, she loses alimony or social security benefits from a previous husband. Property Issues When uniting two households, decide whose house becomes the marital home and what should be done about the other. Figure out who will own or live in the house if the owner dies, if the marriage ends, or if a widowed spouse remarries. Decide whether or not the non-owner spouse should be put on the deed or compensated for contributing to the mortgage or home improvements. If you want to leave the house to ch i ld ren, remove t he home f rom consideration as a joint marital asset. This is often done via a PNA or a trust. But beware that, despite the best pre- ventative measures, you still risk losing the home. Supporting Children Second marriages often involve blended families or the creation of a new family. You both should establish how much financial support each child will receive for nonobligatory expenses not mandated by a court. Decide whether the child's biological parent will be responsible for this support, whether it will be a joint expense, or whether it will come from the proceeds of past marriages and/or from future marital assets. Letting your children know upfront that you've made provisions to legally protect their inheritance may also make them more supportive of your new union, especially if it has created a stepfamily or half-siblings. Similarly, specifically naming your stepchildren in your will as beneficiaries—if you wish to leave them assets—is essential, since they may not automatically inherit from your estate. Estate Planning Remarriage is an excellent opportunity to review your will and the beneficiaries of your assets. Many former spouses have inherited life insurance policies that were not part of a divorce settlement! The laws in some states may entitle your spouse to a portion of your estate, even if your will or trust deems otherwise. If By Paul D. Guerra Considerations for Remarriages +++++++++++++++++++++++++++ + +++ + +++ +++++++++++++++++++++++++++ FINANCIAL PLANNING 3 8 | Cleveland/Akron/Canton MD NEWS ■ M D N E W S . CO M ■ J U LY/AU G U S T 2 0 1 4