Monday, May 21, 2018

Thrifty Thinking: Five Money Mistakes That Could Wreck Your Second Marriage

You don't get a prenuptial agreement
A prenup offers a chance to state which assets will be shared between spouses and which will be separate, says Jacqueline Newman, a family law attorney in New York City. That means that you two - and not the laws of your state - determine how your assets will be divvied up if things in the relationship don't work out (yes, we know it's unromantic to think about the prospect of another divorce when you're just getting remarried, but it's a reality couples must unfortunately have to prepare for).

You keep your financial cards too close to the chest
It's understandable to want to be protective of your finances after you've been divorced. But whether you decide to merge finances with your new partner, you still owe it to one another to lay all your cards on the table - debt, assets, baby mama drama, whatever. If it has the potential to impact your new family's finances in any way, it should be out in the open.

You try to make old financial strategies work in a new relationship
It's shortsighted to expect your new spouse to go along with whatever budgeting or spending styles you used in your past relationship. Whether you want separate accounts, joint accounts, or a hybrid system (the "yours, mine, ours" strategy), it's important to figure out a plan for how you'll manage your new family's finances.

You continue to actively manage your investments
For clients who actively manage their investment accounts, Newman has one piece of advice for when they remarry: stop trading, immediately. That's because any actively managed appreciation that accumulates on investments can be considered marital property, which means your spouse could wind up with a big chunk of it -- that is, if you were to later divorce. Newman sees this mistake most often among individuals who retire and decide to start playing around with their investments.
About Jacqueline Newman
Jacqueline Newman ( is a New York City based divorce lawyer and experienced NY matrimonial law expert. As managing partner of a top tier 5th Avenue Manhattan law firm focused exclusively on divorce, her practice runs the gamut from prenups for high net worth people contemplating marriage to high conflict matrimonial litigation in dissolution's involving complex financial assets and difficult custody issues. She is the Author of "Soon-to-Be Ex for Men: Preserving Wealth, Fatherhood, and Sanity during Divorce" & "Soon To Be EX: A Guide To Your Perfect Divorce & Relaunch."

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