Second Marriage Issues
It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals entering a second marriage tend to be somewhat older and if not necessarily 'wiser' than first-time couples, they have a good idea of their needs, wants, and are often in a more secure financial situation. On the minus side, there can be complications regarding previous spouses and children that require careful consideration when planning the domestic situation (custody, etc.) and estate plans.
Children and Custody
If you or your new spouse have minor children from a previous marriage it is assumed under law that those children will be properly provided for. Child support requirements are generally based on federal/provincial guidelines relating to the relative income of the parents. When becoming remarried, the income of the new spouse is typically not an issue unless the basic support award had been reduced. When minor children are being introduced to a new home life, it is strongly recommended that legal counsel be retained to ensure that the new arrangement is in their best interests, with the agreement of any other parent and compliant with legal guidelines.
Spousal Support
Unlike child support, spousal support is not subject to specific government guidelines and as such each case needs to be judged on the facts. As a general rule, remarriage is not grounds for a person to reduce their spousal payment responsibilities to a former spouse. However, the remarriage of the recipient of the spousal support may result in a reduction, suspension or even elimination in spousal support payments depending on the specific situation.
Estate Planning
When becoming remarried, it should be a primary objective to renew your Will. If your former spouse was the beneficiary or part beneficiary of your Will, the granting of a divorce will nullify that. Consequently, you will need to consider how you want your estate to be distributed. Your remarriage may be reason to reconsider how your children will be dealt with in your Will as well. Finally, there may be other assets with your former spouse as the named beneficiary including RRSPs, RRIFs and Pensions and you need to think about new beneficiary designations.
Please contact us to find out more!
Barbara Reid's Wealth Management Team
Your personal Wealth Advisor in Hamilton, Ontario
