We often discuss the merits of prenuptials from the perspective of the estate holder as well as using marital contracts as a tool to protect inheritance. We have not, however, spoken about the benefits pre-nuptials provide, regarding family harmony, during a second marriage.
When getting remarried for a second or third time, there can be a lot of emotions from everyone involved and often family of the soon-to-be-wed couple may be apprehensive.
As the relative of someone who is getting remarried later in life, it is understandable that there would be concerns regarding the marriage. Everyone, especially children, want to ensure their loved ones are able to look after themselves as they head into retirement and when a person gets remarried, late in life, there can often be curiosities by the individuals’ families, on both sides, as to why the marriage happening. Why do they need to get married? Could they not just live together? Is this person only out for the money?
As such, having a pre-nuptial agreement not only safeguards your wealth, it can also give some relief and some peace of mind to the family around you. That way, they know you're safe and that your wealth and retirement are protected. A pre-nuptial ultimately allows your families to enjoy the celebration and embrace the marriage for what it is, without constantly worrying about the intentions of your soon-to-be-spouse.
It is also very important that pre-nuptial are considered, when entering into a new relationship. A lot of people don’t realize a will is not enough. There have been multiple situations where the departed have left only a will, stating that all assets are to go to their bloodline and not their new spouse, whether common-law or by marriage, believing that the will is a definitive undisputable document.
That is not the case.
In reality, there is an obligation for you to look after your dependents, including your spouse, no matter what their age or health situation is. So if an estate is given soley to your bloodline, your spouse has an automatic ability to challenge the will and say, “I was not looked after properly, I need some funds to pay for my care".
As a result, a will is not the best way to provide protection against the possibility of a challenge by your spouse. To do so, there has to be independent legal counsel and informed consent on a full disclosure of assets through a domestic contract, such as a pre-nuptial. By doing that, you can protect against division after the divorce and ensure your estate stays in your bloodline.
Ultimately, when getting married you have to consider what would happen in the event of a divorce. What is the outcome? Not necessarily what is the likelihood of a divorce, because no one goes into a marriage thinking it is going to end in that fashion.
But if there are assets of value, divorce is a risk and you have to look at the consequence that would occur if that risk were to come to life.
Are you risking your lifestyle?
Are you risking a family business?
If you have to come up with a large settlement, do you have to sell an asset in order to pay for that settlement?
The consequence might not just be the value you have to share; it could be how you get that value. Maybe you have to sell something that is very near and dear to you that you would not otherwise part with.
That is why we always put an emphasis on planning. Prior to entering into a long-term relationship, it is important to consider every outcome so that you can ensure you, and your family, are protected, emotionally and financially.
Would you like more information on planning for remarriage or marriage later in life? Meet with us today!
