Did you know that 1,300 new blended families form every day in the U.S.? Families like these are composed not only of a couple, but their children from the new relationship and any children from previous relationships.
As with any family dynamic, there are things that blended families must consider when it comes to finances. We spoke with Rockland Trust Vice President and Financial Planning Officer Theresa Becker, CFP®, about three considerations for blended families:
Communication and Setting Expectations are Vital
All relationships require open and clear communication. This is especially true when children are involved. It is important for couples to stay on the same page about expectations and parenting style, as well as financial goals and responsibilities. This is not a one-and-done conversation, but a series of talks overtime that evolve as your family’s needs change.
To Combine Assets or Not?
Each relationship requires partners to decide how much they want to co-mingle their finances. For blended families, there may be other financial responsibilities that factor into this decision such as child support, alimony or other expenses that may be shared with another party. Discuss with your partner if, how and when to merge finances together. There is no one-size-fits-all approach here and will be unique to each family’s financial goals.
Benefits of Joint and Separate Bank Accounts for Couples
Protect Your Kids and Financial Assets
It is always wise, particularly when you have children, to have plans in place like power of attorney, wills, and other legal documents to protect your financial assets. Estate planning is even more crucial for blended families. You might consider creating a trust, for example, for your children. If remarrying, you may also want to confirm beneficiaries and make any necessary changes.
