Marriage the Second Time Around!

Sometimes life gives us another chance… a “do over.”  We’re hopeful and with good reason.  We’re also aware that a second marriage is a bit more complicated than the first time we tied the knot.

When two families join together, it’s not always like the Brady Bunch.  Remarriage creates instant extended-family responsibilities that can affect more than one household.  The impact is not just emotional, but also financial.

As a couple planning to re-marry, you may be strolling through a legal and financial minefield.  It doesn’t matter if you’re young, with dependent children, or enjoying a new beginning in your retirement years.  You can’t afford to sidestep issues that could lead to bad feelings among family members or undermine your relationship with your spouse. Worse, should anything happen to either of you, undecided issues could lead to legal wrangling that can last for years and harm loved ones.

By taking steps to clearly define the financial relationships and rights of all family members, you can guarantee that everyone is protected and treated fairly.

The following ideas can help ensure that all family members are provided for according to your wishes:

• Update your auto insurance.  Review your coverage and make sure all licensed family members are under one auto insurance policy.  Look for ways to cut your auto insurance costs.  Talk to your auto insurance agent for details.
• Bring your wills in line with your new relationships and objectives.  Reminder: Your will is your voice from beyond the grave.  It assures that assets are distributed according to your wishes.  An outdated will could lead to embarrassing (and financially devastating) consequences.  Just imagine if your new spouse is not mentioned in the will… while a former one is!
• Consider trusts and prenuptial agreements (marital property settlement agreements, if you’ve already married) to make sure everyone’s needs are met.  Some couples balk at this idea, as if having an agreement reflects a lack of trust.  On the contrary, it is nothing more than a legal document that lays out how assets are to be used and allocated when one of you eventually dies.  It helps protect both the surviving spouse and each spouse’s family.
• Review your life insurance.  When you marry, your financial responsibilities can change dramatically.  Review and change beneficiary designations as needed on all existing policies.  You also may need to add coverage to reflect the situation in your new household.
• Maintain disability insurance.  Nearly one in three women and one in four men will suffer a disability that keeps them out of work for 90 days or longer, according to a 2007 survey.If you become disabled, disability insurance helps protect your family by replacing a portion of your income until you can return to work.
• Obtain property insurance.  If you are living in an apartment, purchase renters insurance.  It will help protect your possessions from fire, theft or other calamity.  If you own your home, review your homeowners insurance.

This is a time of renewed opportunities for you and your spouse.  Be sure to take the necessary steps to protect each other – not just emotionally, but financially as well.

The bottom line: Take time to review your financial arrangements to ensure they reflect your marital status.  Talk to your attorney, tax advisors and financial professional.  If I can be of any assistance, please contact me.
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Rich Mino, a financial advisor with Del Mar Financial Partners, Inc., works closely with families and small businesses in the Carmel Valley area.  He is passionate about making a difference in his community through financial literacy programs, and focuses on building strong relationships with all of his clients so that he can be a resource to them where needed most.  An active member of the Del Mar Kiwanis, Rich supports his Carmel Valley community through local service projects, and by sponsoring the Builders Club and Key Club leadership programs at Carmel Valley Middle and Torrey Pines High Schools.  In 2012, he is working to implement a financial literacy educational program to help prepare and educate kids with the challenges that they will face as they begin and graduate from college.  He is a registered representative of Securian Financial Services, Inc., Member FINRA/SIPC. Securities dealer and registered investment advisor.  Del Mar Financial Partners, Inc. is independently owned and operated. 12526 High Bluff Drive, Suite 280, San Diego, CA 92130. 438300 DOFU 01/2012

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties.  You are encouraged to seek tax or legal advice from an independent professional advisor.  The content is derived from sources believed to be accurate.  Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.  This material was written and prepared by Emerald. © 2012 Emerald Connect, Inc.

Securities and investment advisory services are offered through Securian Financial Services, membe FINRA/SIPC. Copyright 2010 © Custom Communications Insurance Publishing.

Material in this article may not be reprinted without permission.

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