No matter what life circumstances brought you to this point, blending your family can be a tricky thing . . . especially when it comes to your finances. Communicating about your finances, your goals, and how to care for your children financially is key to making your blended family finances work for you. Here are some questions to consider as you start blending your lives together, both personally and financially.
1. What are your money habits?
Are you a spender or a saver? Do you tend to spend more on impulse buys or are your purchases well-thought-out? Know your own habits with money before you talk to your spouse (or future spouse) about their money habits. You can both come to the conversation having reflected on your strengths and growth areas with money. This will go a long way in helping you move forward.
2. Are you willing to create new financial strategies together?
Maybe you each decide to create separate accounts for any spending, or you decide to work together and blend your finances too. Oftentimes, it’s better to work together to create a new financial system rather than hold onto how you used to do things. Learn from each other and work together as you decide how to take care of things differently. Remember, blending your family is an opportunity to start fresh and work to build something new—together.
3. What should we do with our assets from a previous marriage?
A financial advisor can help guide you as you figure out how to divide assets in a blended family. If you have assets from a previous marriage or season of life, it’s a good idea to talk about how you’re going to handle them moving forward. One way many people separate these assets is through a prenuptial agreement. This contract protects these assets in the event that the marriage doesn’t work out. A prenuptial agreement is also helpful regarding how you might take care of your children financially.
4. How should we care for each other’s children financially?
If you and your spouse both have children from previous marriages, knowing how you want to care for each other’s children is so important. Stepchildren and money is a big topic you’ll want to discuss to ensure you’re both in agreement as you move forward. For instance, are you each willing to care for the other’s children financially? If your stepchildren are adults, money conversations may be more centered on large gifts, college tuition, or even what happens if one decides to get married.
5. Do you carry any debt?
Laying out the state of your finances can be vulnerable, especially if there’s debt involved. It’s best to have this conversation before you tie the knot. This is a conversation that you don’t want to surprise someone with. It’s better to know what you’re getting into financially (and what they’re getting into as well) so you can work together and pay it off.
Blended family finances can be difficult to navigate, but knowing what questions you should ask and how to bring your kids into the conversation can make the road a little less bumpy along the way. And with SageSpring Wealth Partners, you don’t have to do it alone. We can work together to help you build a solid financial foundation as you enter this new season of life. Reach out to an advisor today.
