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Next Avenue

June 29, 2022, 2:22 p.m. EDT

Getting married after 50? Read this before merging money with your mate.

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By Richard Eisenberg

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Your investments: Get it in writing

It is also important for couples to have a frank conversation about investments (including each partner’s risk tolerance) and then spell out in the prenup who will manage the portfolio.

Said Krueger: “If one partner has a lot more assets and savings and investments than the other, you really want to figure out: Does that mean that’s going to be the person who’s going to make the big decisions for the household going forward with the investments?”

Savage stressed the importance of writing into the prenup which money you’ll keep separate and which you’ll merge. “Part of your agreement could be that the major assets and the growth of them remains separate property,” she noted.

See : Here’s how much the average working boomer has saved for retirement

3 more key money topics

In the podcast, I noted three other things people planning a second marriage should think about relating to their money:

1. Debt.  Who owes how much and how will that debt get paid off?

2. Social Security and retirement dates.  When will each partner start claiming benefits? When does each expect to retire?

3. Taxes.  How will being married affect which tax breaks they can and can’t claim? Should they file joint or separate returns? (Usually, joint is wisest.)

Krueger offered a warning: one partner feeling left out of the financial decision-making in a second marriage can spell trouble for the relationship. “That’s the kind of resentment that builds up and gets really, really serious,” she said.

Also see: 8 simple rules to maximize wealth—at any age

One last tip

Allen’s final tip for couples entering second marriages: start having conversations about finances early.

“The worst cases I’ve seen are the ‘sabotage prenups,'” she said. Those are when one partner presents the other with a prenup written by their lawyer and says, “Hey, I need you to sign this.”

That, Allen said, “is the way to have a really bad start to a marriage. Even if someone signs that document, it’s probably not going to be a happy marriage.”

Richard Eisenberg is the former Senior Web Editor of the Money & Security and Work & Purpose channels of Next Avenue and former Managing Editor for the site. He is the author of “How to Avoid a Mid-Life Financial Crisis” and has been a personal finance editor at Money, Yahoo, Good Housekeeping, and CBS Moneywatch.

This article is reprinted by permission from  , © 2022 Twin Cities Public Television, Inc. All rights reserved.

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