Remarriage: sharing assets and debts
When it comes to sharing assets and debts in remarriage, how "to have and to hold" can take some thought.
| Type of Asset or Debt
| Factors to Consider
|
| Debts incurred before remarriage
|
- Keeping these debts separate protects the non-debtor spouse's separate property from creditors
|
| Debts incurred during the marriage
|
- Sharing debt only for jointly acquired property protects both spouses' separate property from creditors of the other spouse
- Debt for property owned separately should be the liability of the owner spouse only
|
| Property owned separately before remarriage
|
- Separate assets may be used to provide for children of a previous relationship
- Separate assets may be used to take advantage of both spouses' estate tax applicable exclusion amounts
- Separate ownership protects each spouse from losing his or her assets to the other spouse's creditors
|
| Home
|
- Owning your home jointly as tenants by the entirety can help protect it from many potential creditors
- Seek advice before placing a debtor spouse's name on the title to the home--there are numerous considerations
- Consider a Homestead Declaration for additional protection
|
| Checking account
|
- Having one joint checking account to pay household expenses is convenient
- Each spouse can contribute equally or in proportion to earnings
|
| Investments
|
- Even if you keep your investments separate, make investment decisions together
- Consider the effect on your combined portfolios when making investment decisions; keep your overall portfolio diversified
|
| Insurance policies
|
- Prevent duplicate coverage and make sure that you have adequate coverage for your combined needs
- Check whether it's less expensive to carry separate policies or combine both spouses under one policy
- Check that the correct beneficiary has been named to life insurance policies
|
