Remarriage Financial Planning: Complete Checklist
Key Takeaways
- 1Understanding remarriage financial planning: complete checklist is crucial for financial success
- 2Professional guidance can save thousands in taxes and fees
- 3Early planning leads to better outcomes
- 4GTA residents have unique considerations for divorce planning
- 5Taking action now prevents costly mistakes later
Quick Summary
This article covers 5 key points about key takeaways, providing essential insights for informed decision-making.
Quick Answer
Before remarrying, update your will (marriage revokes existing wills in Ontario), consider a marriage contract to protect assets and children's inheritances, review beneficiary designations on all accounts, discuss finances openly with your partner, and create a blended family financial plan. Independent legal advice is essential for both parties.
Remarriage brings unique financial considerations that first marriages don't face. You're blending two financial histories, potentially supporting children from previous relationships, navigating ongoing support obligations, and trying to protect inheritances while building a new life together. This comprehensive checklist will help you address the key financial planning areas before walking down the aisle again.
Pre-Marriage Financial Checklist
1. Complete Financial Disclosure
Before remarriage, share complete financial pictures with each other:
- Assets: Bank accounts, investments, real estate, business interests
- Debts: Mortgages, loans, credit cards, CRA obligations
- Income: Employment, investments, support received
- Obligations: Child support, spousal support, family loans
- Credit reports: Review each other's credit history
Transparency is Essential
Money is the leading cause of marital conflict. Second marriages have higher divorce rates partly because couples skip these difficult conversations. Full disclosure now prevents devastating discoveries later. If your partner is unwilling to share, consider this a significant red flag.
2. Consider a Marriage Contract
A marriage contract (prenuptial agreement) is especially important for second marriages:
- Protect pre-marital assets: What you bring stays yours
- Inheritance protection: Ensure children from first marriage inherit
- Spousal support terms: Clarify expectations if marriage ends
- Business protection: Keep family business separate
- Debt allocation: Pre-marital debts remain with original debtor
Requirements for an enforceable marriage contract in Ontario:
- Written document signed by both parties
- Both parties have independent legal advice (ILA)
- Full financial disclosure exchanged
- No duress or undue influence
- Executed properly (witnessed, notarized)
3. Update Your Will
Critical: Marriage Revokes Your Will
In Ontario, marriage automatically revokes your existing will unless it was made "in contemplation of marriage" to that specific person. If you die without a valid will after remarriage, intestacy rules apply - your new spouse receives significant rights that may not reflect your wishes regarding children from your first marriage.
Options for protecting all family members:
- Life interest trusts: Spouse uses assets during lifetime, children inherit after
- Specific bequests: Name children as beneficiaries for specific assets
- Insurance solutions: Life insurance payable directly to children
- Joint partner trusts: Complex but effective for larger estates
Key Takeaways
- 1Marriage automatically revokes your will in Ontario - update immediately before or after
- 2Marriage contracts (prenups) are especially important in second marriages with children
- 3Review all beneficiary designations - insurance, RRSPs, TFSAs, pensions
- 4Discuss finances openly including debts, support obligations, and expectations
- 5Create clear agreements about supporting stepchildren and protecting bio children's inheritance
Quick Summary
This article covers 5 key points about key takeaways, providing essential insights for informed decision-making.
4. Review All Beneficiary Designations
Beneficiary designations override your will. Update all accounts:
Beneficiary Review Checklist
| Account Type | Current Beneficiary | Desired Beneficiary |
|---|---|---|
| Life Insurance | _____________ | _____________ |
| RRSP | _____________ | _____________ |
| TFSA | _____________ | _____________ |
| Pension | _____________ | _____________ |
| Non-Registered Accounts | _____________ | _____________ |
5. Powers of Attorney
Update or create new Powers of Attorney:
- Power of Attorney for Property: Who manages finances if incapacitated?
- Power of Attorney for Personal Care: Who makes health decisions?
- Consider alternates: Ex-spouse often still named - update immediately
- Discuss with children: If adult children were named, clarify roles
Blended Family Financial Planning
Household Budget Approaches
Common approaches for managing blended family finances:
Household Finance Models
| Approach | Works Well When | Challenges |
|---|---|---|
| Fully Combined | High trust, similar values, no external obligations | Support payments, protecting children's inheritance |
| Proportional Contribution | Income disparity, different kid expenses | Complexity, tracking required |
| 50/50 Split | Similar incomes, equal children, simplicity desired | May be unfair if incomes differ significantly |
| Three-Account (Yours/Mine/Ours) | Second marriages, protecting separate assets, autonomy | Requires ongoing management, less unified |
Children's Expenses
Clarify expectations around children's costs:
- Day-to-day expenses: Who pays for whose children?
- Education: Post-secondary funding for bio vs. step children
- Activities: Sports, music, extracurriculars
- Child support integration: How does received/paid support factor in?
- Special expenses: Medical, dental, therapy
Frequently Asked Questions
Q:Should I get a prenup before remarrying?
A:A marriage contract (prenup) is strongly recommended for second marriages, especially if you have children, significant assets, or business interests. It protects pre-marital assets, clarifies expectations around spousal support, and ensures your children's inheritance. Both parties need independent legal advice for the contract to be enforceable in Ontario.
Q:How does remarriage affect my spousal support payments?
A:If you're paying spousal support and your ex-spouse remarries, their support typically ends or is reduced. If you remarry, your obligation may continue but could be modified if your financial situation changes. If you're receiving support and remarry, it usually ends. Cohabitation before remarriage can also trigger changes. Review your separation agreement for specific terms.
Q:What happens to my will when I remarry in Ontario?
A:In Ontario, marriage automatically revokes your existing will unless it was made 'in contemplation of marriage.' This means your old will becomes invalid upon remarriage, and intestacy rules apply if you don't make a new one. Your new spouse would receive significant inheritance rights, potentially at the expense of children from your first marriage. Update your will before or immediately after remarriage.
Question: Should I get a prenup before remarrying?
Answer: A marriage contract (prenup) is strongly recommended for second marriages, especially if you have children, significant assets, or business interests. It protects pre-marital assets, clarifies expectations around spousal support, and ensures your children's inheritance. Both parties need independent legal advice for the contract to be enforceable in Ontario.
Question: How does remarriage affect my spousal support payments?
Answer: If you're paying spousal support and your ex-spouse remarries, their support typically ends or is reduced. If you remarry, your obligation may continue but could be modified if your financial situation changes. If you're receiving support and remarry, it usually ends. Cohabitation before remarriage can also trigger changes. Review your separation agreement for specific terms.
Question: What happens to my will when I remarry in Ontario?
Answer: In Ontario, marriage automatically revokes your existing will unless it was made 'in contemplation of marriage.' This means your old will becomes invalid upon remarriage, and intestacy rules apply if you don't make a new one. Your new spouse would receive significant inheritance rights, potentially at the expense of children from your first marriage. Update your will before or immediately after remarriage.
Support Obligation Considerations
Ongoing Support Payments
Remarriage affects support obligations:
- Child support: Generally unaffected by payor's remarriage
- Spousal support paid: May be reviewable if circumstances change significantly
- Spousal support received: Typically ends or reduces upon remarriage
- New spouse income: Generally not considered for existing obligations
Review Your Separation Agreement
Your separation agreement may have specific terms about remarriage and support. Some agreements automatically terminate support upon remarriage; others require a review or court order. Know your specific terms before remarrying.
New Spouse's Obligations
Understand your new spouse's existing obligations:
- What child support do they pay or receive?
- What spousal support obligations exist?
- Are there arrears or enforcement issues?
- How might these affect your household finances?
Post-Marriage Financial Steps
Immediate Actions
- Update beneficiaries on all accounts if not done pre-marriage
- Execute new wills reflecting new family structure
- Update powers of attorney
- Notify insurers of marriage (may affect premiums)
- Update emergency contacts and medical consents
First Year Planning
- Implement agreed household budget system
- Merge or coordinate insurance coverage
- Review tax filing strategy (married vs. common-law)
- Coordinate retirement planning
- Schedule financial check-ins (quarterly recommended)
Common Remarriage Financial Mistakes
Avoid These Pitfalls
- Not updating will: Old will revoked, intestacy rules may apply
- Ignoring marriage contract: Assuming love is enough - plan for reality
- Forgetting beneficiaries: Ex-spouse still named on accounts
- Assuming support ends: Check your specific agreement terms
- Skipping financial disclosure: Hidden debts or assets create conflict
- Blending too quickly: Rushing to combine finances before clarity
- Forgetting children's interests: New spouse should not supplant children's inheritance
Start Your New Marriage on Solid Financial Ground
Second marriages come with financial complexities that require careful planning. From marriage contracts to estate planning to blended family budgets, getting the structure right from the start protects everyone involved. Our divorce financial planning specialists understand the unique challenges of remarriage and can help you navigate these transitions successfully.
Contact our Mississauga office for a pre-remarriage financial planning consultation for you and your partner.
Related Articles
Ready to Take Control of Your Financial Future?
Get personalized divorce planning advice from Toronto's trusted financial advisors.
Schedule Your Free Consultation