9th Feb 25 2:20 am
JamieAccording to the United States Census Bureau, most men and women remarry within five years post-divorce. When remarrying with significant assets or children from previous relationships, an individual may want to think about the impact this might have, particularly regarding their children’s inheritance as, after they die, the new spouse could take complete control of the estate, if the deceased individual carried out no estate planning, leaving the surviving children with nothing. Learn some tips regarding divorce planning for second marriages, and explore how the Colorado Divorce Law Group might assist individuals who are planning to remarry; reach out to our firm today by calling (720) 593-6442, and discuss your divorce concerns with a seasoned Colorado family law attorney.
If an individual passes away without leaving a will, all of the assets in their name undergo probate (minus those not impacted by this process such as assets in living trusts, life insurance proceeds with named beneficiaries, payable-on-death accounts, property owned by tenancy by the entirety or joint tenancy, real estate/vehicles with transfer-on-death deeds/registrations, securities in transfer-on-death accounts, and funds in retirement accounts, 401(k)s, or IRAs), and the probate court distributes the deceased’s assets according to the state’s intestate laws. How the court distributes assets largely depends on the decedent’s surviving family members; for instance, in Colorado, if the deceased has surviving dependents and the surviving spouse has no dependents, the surviving spouse inherits all of these assets.
In addition, elective share protections ensure spouses receive a proportion of the other spouse’s estate upon their death, based on the marriage length, preventing spouses from disinheriting the other and creating a safety net for those who fail to make a will or update an existing one. If the spouses want to avoid these protections, they can create a marital agreement, waiving this right.
Safeguarding assets in a second marriage is possible through the use of estate planning tools and marital agreements. Outlined below is an explanation of these mechanisms.
Several types of financial accounts (for example, pensions, 401(k)s, retirement accounts, IRAs, and life insurance policies) give account holders the option to designate beneficiaries, who receive these funds after they die. If they nominate a single primary beneficiary, they receive all of these funds, and if there are multiple, they split this money equally. Account holders may also designate contingent beneficiaries, and these beneficiaries only receive funds from the account if they outlive the main beneficiaries; one option available to those looking to remarry is to nominate their children as the main beneficiaries and designate their new spouse as the contingent (or the other way round).
Following the death of a spouse or divorce, the recommended approach is to review all of these accounts to identify the listed beneficiaries, and if a person then wishes to remarry, they could nominate their children as the main beneficiaries to most or all of these assets to secure their inheritance. On top of this, if the first marriage ended in divorce, it is advisable to check whether any existing powers of attorney have a former spouse listed as an agent to ensure that the person does not have any legal say concerning financial/healthcare decision-making in the event of incapacitation. Consider continuing the discussion of divorce planning for second marriages involving substantial assets with an experienced Colorado divorce lawyer, and schedule an appointment with the Colorado Divorce Law Group today.
Marital contracts determine asset division following a spouse’s death or divorce. They outline each spouse’s holdings and how to split assets after the termination of the marriage, ensuring fair inheritances for each party and the children of previous relationships, making it an ideal legacy planning tool for those looking to remarry. To be legally enforceable, prenuptial agreements (contracts signed before marriage) and postnuptial agreements (contracts signed after marriage) in Colorado must meet the following criteria per C.R.S § 14-2-309:
A Last Will and Testament gives instructions for asset distribution upon the death of the individual concerning the document, as well as providing an opportunity to appoint guardians to look after surviving children/pets. Depending on how the person holds their assets, this may include some or all of their personal and real property. Worth noting is that wills become public records following the decedent’s death, so to maintain privacy for certain assets, one option is to utilize trusts.
When looking to remarry, creating a will or updating a current one can help ensure asset distribution occurs according to the deceased’s wishes. A person can therefore use this document to make sure they look after their other loved ones in addition to their spouse. The requirements for establishing one in Colorado are as follows:
Trusts help keep assets private because they avoid probate, the process whereby a court recognizes a will and manages property distribution. Depending on a person’s circumstances and requirements, there are several options available. If a person wishes to secure the future of their new spouse, they could move their assets into a marital trust, which lists the spouse as the only beneficiary, but this leaves nothing for their children.
Alternatively, the individual could opt for a family trust, enabling the creator of the trust to designate the surviving spouse and other family members, including children, as beneficiaries and specify distribution terms, such as the ages of the children when distributions can occur and percentage allotments. It is worth noting that it is advisable to select a trustee who is likely to act in the children’s interests, and this person may not necessarily be the new spouse, particularly if they do not have a close relationship with the children.
Alongside estate planning, there are other noteworthy planning considerations related to remarrying. Below is an outline of these factors.
If an individual receives spousal maintenance from their first marriage (financial support provided from one spouse to the other to assist with living expenses), these payments may end after remarrying. In light of this, it is worthwhile considering how this may impact the person’s ability to afford their mortgage and living expenses, as well as how the spouses plan to handle their banking (joint vs. separate accounts) and debts (for example, joint or separate credit cards).
Parents looking to remarry may want to think about how this may affect their minor children. For instance, whether it is necessary to move the child into their new spouse’s home or, if the new spouse has their own children, how blending families might have an impact. In addition, it is worth considering whether the new spouse is willing to financially support the other’s child.
Moreover, if a custodial parent wishes to move to live with their new spouse and bring their children with them, they could require permission from a family court/the other parent. This may also result in a change to custodial arrangements and/or parenting plans.
Per the National Library of Medicine (NLM), the proportion of marriages where one or both spouses have remarried has increased over the last few decades. Since remarrying impacts a person’s family structure, responsibilities, goals, and finances, it is an ideal time for those considering remarriage to review and safeguard their assets and financial future. For assistance with divorce planning for second marriages, consider visiting with a knowledgeable Colorado divorce attorney; call the Colorado Divorce Law Group at (720) 593-6442 to arrange a confidential consultation.
