Getting hitched later in life has its own set of financial considerations. There’s more to sort out than just wedding gifts.

Two people with longer histories have way more things to think about than two just starting adulthood.

Think of established assets, retirement savings, and possibly obligations from previous relationships, such as alimony or child support.

Older couples who plan to marry should talk through their issues on finances, children, assets, housing, and retirement before the wedding.

Understanding the financial implications of marrying later in life is crucial to ensure both parties preserve their economic security and achieve their shared and personal goals.

Couples should also consider legal advice to understand fully the implications of marriage on their assets and to draft any necessary pre-nuptial agreements.

This proactive approach can safeguard each individual’s financial interests and promote harmony in the marriage.

Given the complexities involved, seeking financial advice from professionals makes sense. A financial advisor can help couples create a comprehensive financial plan that addresses their current needs, retirement goals, and estate planning.

Ensuring that getting married after 50 leads to financial security and supports your life goals can be easier said than done.

Why Marrying After 50 is Financially Different

To combine incomes or not to combine incomes, that is the question. At least couples at this point in their lives can talk more openly and confidently about matters like money, conversations that can strengthen relationships and marriages long-term.

Older couples managing their finances alone may find it a major adjustment to share. Merging incomes is merging lifestyles. It’s a major decision.

Couples can stay separate, share their incomes entirely, or combine their incomes somewhere along that spectrum of together to apart.

Couples increase their buying power with a shared income, creating a more significant financial cushion for future hurdles like retirement.

Retirement planning becomes a joint concern. It’s vital to consider how to protect and potentially merge retirement savings such as KiwiSaver accounts and other pension schemes.

Discussions about retirement goals, timelines, and contributions to savings are important.

But is this financial cushion still present if your incomes remain separate? It depends on your unique situation.

Combining Assets and Liabilities

Merging finances can be tricky, especially if you have different spending habits or debt levels.

You might be able to save on some bills by combining accounts or health insurance plans, but you might not. Be open and honest about your financial situation before marriage.

When combining assets and liabilities, there’s a balance to be found between how individualised you wish to remain financially.

You probably have different risk tolerances and financial goals than your partner. Matters like these require compromise and planning.

You might want to safeguard particular assets, especially those meant for children from previous relationships.

If one partner carries significant debt, discuss how you’ll handle it going forward. Will you share responsibility? Will you prioritise paying it down before co-mingling funds?

If either party is bringing significant debt into the marriage, it’s crucial to have open discussions about how this debt will be managed.

While debts incurred before the marriage typically remain the individual’s responsibility, how future income and resources are allocated can impact both parties’ financial health.

Financial Communication

Marrying later in life brings a unique set of financial considerations. Open communication is key.

Before saying “I do,” have honest conversations about your financial situation, including assets, debts, income, and spending habits. This advice transcends age.

Don’t shy away from the details. Be upfront about loans, retirement savings, and even any lingering credit card debt. This transparency builds trust and allows you to develop a financial plan together.

Take things slowly. You don’t have to jump straight into joint accounts and commingling everything.

Start by creating a joint budget for shared expenses like groceries and utilities. As you build trust and comfort, you can gradually integrate finances further, perhaps by opening a joint savings account for future goals.

Taking a step-by-step approach ensures your financial future together is built on a solid foundation.

Estate Planning and Inheritance

Grasping how marriage affects the ownership and division of property, including the family home, investments, and business interests, only makes sense.

In New Zealand, the default legal position is that, upon separation, relationship property is divided equally.

This includes property acquired during the marriage and can include the increase in value of separate property if it becomes intermingled with relationship property.

Pre-nuptial agreements (known legally as Contracting Out Agreements under the Property (Relationships) Act 1976) are highly advisable for those entering marriage later in life.

These agreements let parties determine how their property will be classified and divided in the event of separation or death. This can protect pre-marriage assets and inheritance rights for children from previous relationships.

Marrying later in life necessitates revisiting your will, trust arrangements, and estate planning to reflect your new marital status.

Considerations should include how to provide for your new spouse while also fulfilling commitments to any children from previous relationships.

The Family Protection Act and the Property (Relationships) Act can affect estate distribution, so professional advice is key.

After getting married, re-evaluating life, health, and long-term care insurance policies is important. You may want to adjust beneficiaries or coverage amounts to reflect your new circumstances better and ensure that both spouses have adequate protection as they age.

While New Zealand does not have a capital gains tax that might affect most couples, there are still tax considerations to be aware of, especially if one or both parties have business interests or investment income. Consulting with a tax professional can help optimise your tax situation.

Protect Your Wedding Bliss

Teamwork makes the dream work, and at the end of it all, the celebration of you and your partner is one to cherish.

Don’t allow finance discussions to take away from wedding bliss, no matter your life stage.

By prioritising communication, teamwork, and professional guidance, you can address your financial worries and build a secure future together.

This protects your wedding bliss and lays the groundwork for a happy and fulfilling life as a couple.