It is useful to consider the odds when you are getting remarried after having been divorced.
There are various different theories with regard to why it is so, but a high percentage of divorced people who get remarried wind up getting divorced again. The majority of second marriages fail, and almost 3 out of every 4 third marriages do not withstand the test of time.
Most people who get remarried after divorcing have children. From an estate planning perspective you have to consider the financial well-being of your children when you are planning your estate.
By entering into a prenuptial agreement you can assert personal control over all or some of your assets. In this manner you would have the ability to make sure that your children are provided for in your estate plan.
You could also provide for your spouse for the rest of his or her life in the event that you die first by conveying assets into a qualified terminable interest property trust.
With these trusts the surviving spouse receives income on an ongoing basis throughout his or her life, but the beneficiary that you choose when you create the trust will inherit the assets after the death of your surviving spouse.
Given the fact that it is statistically likely that a second or third marriage will fail it is certainly wise to think things through completely before you take the plunge. How you proceed is obviously a personal matter, but you would do well to consider the implications of the statistics and weigh all of your options.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.