Any change in marital status is a significant life shift, and thus it should always be accompanied by a reevaluation of your financial health. Whether you are getting married, divorced, or have been widowed, you will have to update your will and adjust the beneficiaries of your pension plan and insurance plan. Additionally, any big change in life status presents a fitting opportunity to reassess your investments, family trusts, and estate planning.
If you are planning to get married, you should evaluate your financial options long before “I dos” are exchanged. Marriage opens up a whole new realm of financial opportunities, whether you and your spouse will be combining incomes or a non-earning spouse needs financial protection. Your financial advisor from The Beacon Group at Assante Financial Management Ltd. can help you assess your options. Additionally, marriage is an opportunity to take advantage of beneficial tax planning strategies, like income-splitting and combined or transferred tax credits.
At the other end of the spectrum from marriage is divorce, but it’s an equally important life event in terms of the financial implication. You must cope with a reduction in financial assurances, like adjusting to a single income. Whether you are the spouse who is receiving or paying a lump sum settlement, you must make arrangements to give or receive such a large sum. Finally, it would be wise to invest in disability or critical illness insurance in case you are ever forced out of work. The team at The Beacon Group of Assante Financial Management Ltd. will assist you in developing a comprehensive financial plan that protects the future of you and your children as you navigate this stressful life circumstance.
If you are getting remarried and there are children involved, you will need to update insurance coverage and possibly equalize education savings. Your financial advisor can also assist you with updating your estate plans, like creating a spousal trust. A spousal trust will provide for your current spouse until death, and be dissolved as assets for the children from your first marriage thereafter.
When your spouse passes, it may be an overwhelming and emotionally trying time. Your financial advisor can help you navigate this difficult phase by managing the proceeds from investment funds, insurance, and your spouse’s estate. You can experience a sound financial future even with this often sudden and tragic change in marital status.
In order to ensure a stable transition should you experience a change in marital status, your best practice is to prepare in advance. Your financial advisor can help prepare you for a happy and financially secure future.