This article will discuss the financial considerations when entering your second marriage Australia.
People may choose to remarry for different reasons. Ultimately, remarriage is a celebration of love and commitment. It’s a chance to start fresh and build a new life with your new partner.
What Is a Second Marriage Australia?
A second marriage Australia, or a “remarriage,” refers to the act of getting married again after a previous marriage has ended. However, for a second marriage Australia to be valid, a divorce order in relation to the first marriage must take effect.
A person can remarry under the Marriage Act 1961. But note that the law strictly states that it is illegal in Australia to marry someone while still married to someone else (bigamy). This means that a person cannot remarry if the first marriage is still subsisting.
It is advisable not to plan the wedding date for your marriage until the finalisation of your divorce order from your first marriage. The divorce process takes time and courts do not automatically grant it at the first court hearing.
Second Marriage Australia: How Can You Manage Your Finances?
Managing finances in a second marriage Australia can be challenging, especially when there are children from a previous relationship involved. These tips might help you navigate this situation:
1. Speak to a Financial Planner
You must obtain a review of your benefit nominations and how they will be impacted by the second marriage Australia. A financial planner can help you understand the financial implications of remarriage and provide advice on how to manage your finances.
A financial planner can help you understand your financial situation and provide you with a clear picture of your assets, liabilities, and income. This can help you make informed decisions about how to manage your finances in your second marriage.
Moreover, setting financial goals as a couple can help you understand each other’s priorities, develop good saving and spending habits, as well as create the kind of life you want. Consulting a financial planner about how to manage your finances goes a long way.
2. Discuss Financial Issues Early On
Disclose early on what each spouse will bring to the marriage. This includes both assets and liabilities. Full financial disclosure is essential to avoid misunderstandings and conflicts later on. It will also help both partners better plan for the future.
Also, a binding financial agreement can help protect wealth as well as make provisions for children from a previous marriage. Discussing financial issues early on can help you decide whether to enact a financial agreement to protect assets accumulated before the marriage.
3. Decide How Much to Combine Finances
While combining finances might seem like the move most in line with committing to spend your lives together, sometimes it makes sense to keep things separate. During this step, you can decide to what extent you wish to combine finances based on your individual needs and preferences.
Why is this important? Keenly observing your partner and how you navigate your differences in money management is important. Deciding how much to combine finances early on can help you avoid misunderstandings and conflicts later on. Moreover, making a list of your combined income, regular expenses, assets, debts, and loans can help you understand your combined financial situation.
4. Consider Estate Planning
Estate planning is important for those in second marriages and de facto partnerships. Many Australians don’t realise that when they get divorce and then remarry, in most cases, their existing Will becomes invalid.
According to section 13 of the Succession Act 2006, a divorce can revoke a will, but only some aspects of it. For example, any assets or the family home that have been granted to the spouse of the prior marriage and their appointment as an executor, trustee, or guardian will be revoked upon divorce.
For blended families in particular, this means family members may not receive the inheritance they expected. You can consult a Will and estate lawyer to update your Will and ensure asset distributionaccording to your wishes.
The conflict between the children from the decedent’s first marriage and the surviving spouse from a second marriage is becoming more frequent in estate litigation. It can be challenging and delicate to strike a balance between the competing interests of a second spouse and those of the children of a first marriage.
In summary, managing finances in a second marriage Australia requires open communication, careful planning, and professional advice. By taking these steps, you can avoid financial problems and build a strong and successful relationship in your second marriage.
5. Making a Financial Agreement
A binding financial agreement (BFA is a legal agreement made by a couple in Australia before they get married or enter into a de facto relationship.
Why is there a need to have a financial agreement for your second marriage Australia? Here are some reasons:
- The Family Law Act 1975 in Australia legally recognises financial agreements as binding documents. However, there are certain conditions that must be met in order for the legal rights and asset protection of a BFA to be considered valid.
- BFAs help protect wealth as well as make provisions for children from a previous marriage. It can protect cash, real estate, superannuation, investments, businesses, inheritances, and pension entitlements, as well as outline any obligation to finalise debts and liabilities of the relationship.
- Depending on the number of assets and the complexity of your case, creating a prenuptial agreement can cost as little as $2,000-3,000 to over $10,000 in Australia. It is best to speak with a family lawyer about your individual circumstances and needs to get a quote.
- Both parties are required to receive independent legal advice on the document before it can be considered a binding financial agreement. This ensures that each partner receives independent legal advice and no-one gets a bad bargain and that the agreement is fair and reasonable for both people.
Second Parents and Children
Another issue in second marriages is children and parenting matters. For example, Person A and Person B married, had children, but later divorced. Person B then remarried years later to Person C. Person A and Person B’s children still needs to see their other parent which is Parent A.
It is crucial to make every effort to treat all children equally. This is the case whether they are your biological offspring or your stepchildren. Together, the biological parent and stepparent must establish the same boundaries, uphold the same rules, and convey the same key messages. Parenting plans can help manage how the biological parents or the step parent share custody for the children.
Protect Your Financial Future and Your Loved Ones With a Family Lawyer
Second marriages can be just as wonderful as first marriages, but they often come with a unique set of financial challenges. If you are considering a second marriage Australia, it is important to speak with a family lawyer to discuss your financial rights, obligations, and other legal complexities.
Our family lawyers at JB Solicitors can help you with a variety of financial matters, including:
- Drafting your binding financial agreements.
- Helping with family provision claims
- Creating a Will, trust, and other estate planning documents to ensure that the deceased’s estate is taken care of properly.
- Understanding your child support obligations and negotiate a fair child support agreement.
- Spousal support matters.
If you are considering remarriage, it is important to speak with a family lawyer to discuss your financial rights and obligations.
Contact a family lawyer today to schedule a consultation.