(Re)Marital Bliss: 5 Money Moves to Make Before You Retie the Knot

By Mark Yatros

When you’re remarrying, you may think you’ve “been there, done that,” so you don’t need much guidance. That may be true for your love match, but when it comes to money, second (or third, etc.) marriages present financial situations different from your first time around.

Remarriage brings with it a union of hearts and a meeting of financial histories and futures. As you and your future spouse begin this journey, you should consider not just the romance but also the reality of your financial intertwining — or deliberate non-intertwining.

Whether you choose to merge your finances entirely, maintain separate accounts, or find a happy medium, it’s vital to approach this new chapter with a tailored financial strategy.

Here are the 5 must-know moves to make before you retie the knot.

1. Define your financial relationship

Communication is the gateway to trust, especially when it comes to money. Talk with your future spouse about how you both view money. Will you share everything, or do you prefer a bit of independence? There's no wrong answer; it's only what works best for you two.

Some couples combine all their money, feeling it strengthens their bond. Others keep separate accounts to maintain some autonomy or simplify estate planning. Yet other couples have some joint accounts and some separate. There are benefits to each approach, and the choice is deeply personal.

If you’re interested in more thoughts on combining finances in marriage, please read our blog, Love and Money: How to Successfully Combine Finances After the Wedding Bells Stop Ringing.

Pro tip: Start with honesty and openness about your finances. When you know where you both stand, making decisions together is easier.

2. Review your estate plan

In the whirlwind of romance and wedding planning, there's a practical vow you need to make, too: ensuring your estate plan reflects your new life and love. You must ensure your will and trust, if you have one, are updated to protect your new family and respect your children from previous relationships or obligations from your past.

No one enjoys thinking about the end of their life, especially when anticipating a marriage. Yet, it's crucial to acknowledge that failing to update your estate plan can leave your new family entangled in legal complexities should the unforeseen happen. Take the time to review and revise your existing will and trust to embrace your partner and any future children.

Pro tip: A visit to an estate planning attorney can ensure your will and trust are set up correctly. They can help make them work for everyone you care about.

3. Update your beneficiaries

When you remarry, you must revisit your retirement account beneficiaries, especially your 401(k). According to Employee Retirement Income Security Act (ERISA) regulations, your spouse is typically the default recipient of any death benefits from your plan. This detail underscores the need for up-to-date beneficiary designations to align with your new marriage.

Like those you name in your will, the names you list on your beneficiary forms are significant. They carry so much weight that they can override the instructions in your will. As you make changes, remember to secure written consent from your former spouse if needed; this keeps things clear and prevents disputes.

If you'd like to name your children beneficiaries, they should be at least 18 to avoid complications. Also, it's wise to consult a financial advisor about the tax consequences for non-spousal beneficiaries. An inheritance is a gift, but without careful planning, it could come with an unwelcome tax surprise. My team and I would be happy to discuss this with you. Please contact us here or call (269) 218-2100.

Pro tip: List every policy and account with a beneficiary. Make changes as needed so the right people are in line to benefit.

4. Consider creating a prenup

Prenuptial agreements aren’t just for the rich and famous. They’re a practical tool for any couple about to tie the knot. Think of a prenup as a roadmap for your financial future together; it outlines who gets what, not only in the unfortunate event of a split but also if one of you should pass away unexpectedly. It clarifies your financial picture from the start, which can help protect each person's interests and set clear expectations. 

Crafting a prenup is an act of mutual respect and foresight. It doesn't just safeguard your assets — it also serves as a form of financial communication between partners, laying out a transparent path for the future of your finances. While no one enters marriage intending to part ways, life can be unpredictable. A prenup provides a predefined plan that can significantly simplify matters should your relationship face unforeseen challenges.

For more information on prenups, please read our blog, 10 Realistic Reasons to Consider a Prenuptial Agreement Before Saying 'I Do.'

Pro tip: A prenup should be fair to both of you. Have open discussions and get legal help to write it.

5. Get guidance

Money matters can get tricky, especially when you're blending families and finances. A financial advisor can help you make the best money moves and build your financial future. Whether you’re starting from scratch or adjusting existing financial plans, their experience can help set you up for a more secure future.

Pro tip: My colleagues and I are happy to offer a free, no-strings-attached consultation. Please contact us here or call 269-218-2100.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to ensure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

 Allegiant Wealth Strategies offers securities and advisory services through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Allegiant Wealth Strategies has offices in Battle Creek and Portage, Michigan, from which we serve Calhoun County, Kalamazoo County, and Kent County (Grand Rapids). The Allegiant Wealth Strategies team offers no-obligation financial planning consultations; call 269-218-2100 or contact us here.