TomorrowMakers

Getting married again? Here are 5 financial lessons to learn from before the wedding bells ring.

5 Financial lessons to learn before preparing for your second marriage

Preparations underway for your second wedding? The venue, the food, and the guest list can all be taken care of in good time. Before anything else, you need to sort out your finances. Talking about assets and finances with your spouse-to-be can be awkward. But once you initiate this conversation you will realise its importance. 

When it comes to remarriage, here are five lessons that will ensure you don’t get trapped in a financial mess again.

1. Insist on a prenup

We agree that getting a prenup is not a romantic gesture. But if you and are your partner are entering the marriage with substantial assets, you should definitely bring up the topic. It is even more essential if one of you has considerably more assets than the other. A prenup can save a couple from the extreme hassle of dividing assets in case of a divorce. Although prenuptial agreements are not legal in India, they are governed under the Indian Contract Act. If the marriage doesn’t work out, courts will consider this prenup during a divorce settlement.

2. Revisit your life insurance policy

If your ex-spouse was listed as a nominee in your life insurance policy, be sure to change it. Although this may seem obvious, couples often get so deeply entangled in divorce proceedings that they overlook such things. In case something unfortunate happens to you and your current spouse isn’t listed as your nominee, they will lose out on all benefits related to your insurance policy. If you are getting married to someone who is also a divorcee, you should advise them to update their nominees too.

3. Take control of your finances

Some people tend to depend on their significant other when it comes to managing finances. Whether it’s monthly bills or premium payments, they live in blissful ignorance. If your first marriage was like this, now is the time to change things. Not knowing what is happening with your money can backfire. Additionally, with your ex-spouse no longer in the picture, there is a higher probability that you might miss an instalment. Keep an eye on your bank account and on any bills that are due. It might even help you start a conversation with your new partner about managing finances. 

4. Rework your will

Firstly, if you don’t have a will, create one. Many people put off making a will because no one likes to think about death. But having a will in place is the best way to ensure your loved ones are taken care of. If you already have a will, people such as your ex-spouse or kids (if you have any) might be a part of it. If your partner from the second marriage also has kids, you might want to update your will. When you have an updated will you can discuss it with all members involved and clearly define what happens to your assets once you’re gone.

5. Discuss who pays for what

This step isn’t particularly romantic either – but it is necessary. At the very beginning of your marriage, (or better still, before your wedding) have an open conversation with your significant other about managing finances. Having a joint account specifically to take care of monthly payments has both pros and cons. Splitting assets during a divorce is one of the cons. Whether or not to merge your assets is completely up to the two of you, but talking this matter over will surely give you more clarity. 

When it comes to handling finances, there is so much you can learn from the mistakes you made in your first marriage. More importantly, you can make sure you don’t repeat those mistakes. Even if you can’t figure them out on your own, you can always revisit this article to check if crucial financial decisions have been taken care of.

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