Financial Solutions for Blended Families
When you pronounce an encore “I do,” there are usually a unique set of challenges to be met. Here are some points to ponder, as you prepare to blend the finances of two families.
· Review your combined family resources. Carefully review both sets of income and expenses and determine a joint family budget.
· Decide whether to mix assets and liabilities. Some blended families choose to separate assets and liabilities, while others opt to combine them. In some cases it might make sense to combine debt to reduce a payment, but weigh each situation before making a consolidation decision.
· Set new financial goals together. Agreeing on short- and long-term financial goals should be a high priority when entering into a later-in-life marriage. With a shortened timeframe, it’s more important than ever to start saving jointly for important milestones.
· Make estate planning decisions early. The complexity of estate planning for blended families makes it especially urgent to address these issues early – even if you’re still young and healthy. The traditional lines of inheritance don’t necessarily apply in situations where remarriage occurs.
Blending families and watching them grow together can be a rewarding experience. Since no one has all the answers, don’t be afraid to ask for help along the way with your financial decision-making. Seek out a financial advisor for assistance.
James C. Hanna, CFP®, MBA, Financial Advisor, Certified Financial Planner ™ practitioner. Advisor is licensed/registered to do business with U.S. residents only in the states of Kansas, Missouri, Colorado, Nebraska, Oklahoma, Texasand Indiana.
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