This past summer may be remembered as the summer of marriage as the New York Times estimated that 3 billion people watched the Royal Wedding.
I am generally an optimistic person however, I recently learned that 35% of Canadian marriages end in divorce before the 25th wedding anniversary. Of those that get divorced 43% will end up getting re-married.
In terms of finances, a first marriage is usually more straightforward as couples are just starting out. Whereas, a second or third marriage can bring about more complex questions regarding finances, established assets and specifically Will and estate planning. If there are children from previous marriages then the classic estate plan of an outright transfer to the surviving spouse may not be the most appropriate plan. Trusts are often the ideal estate planning solution in subsequent marriage situations, A trust enables a testator to provide for their surviving spouse while ultimately benefiting their children from a prior marriage.
While it may not be the most romantic topic it is important for new couples to talk about their finances and develop a clear plan of how partners and children will be taken care of in the event of a divorce or death.