When Arizona residents who have gone through a divorce enter into new marriages, they will be creating a new financial union. If one or both partners have children from another relationship, they will be forming a blended family with stepchildren and stepparents. Prior to the marriage, financial planners recommend that partners disclose their financial situations and discuss how to address immediate and long-term expenses for the children as well as saving for retirement. Some people might choose to execute a formal prenuptial agreement, but having a conversation about these issues might suffice for other couples.
A couple should begin by talking about their attitudes toward spending and saving and their goals for their children. If one partner has more assets than the other one, they should establish a fair allocation of resources among the children.
No secrets should be kept regarding money or debts. Decisions need to be made about whether any real estate will be bought or sold and how deeds will be registered. Partners should also establish a savings plan for retirement and possibly their children’s education.
If these financial issues are covered in a prenuptial agreement and the marriage ultimately ends, then the document could guide the terms of the property division aspect of the subsequent divorce proceedings. However, a court might refuse to uphold such an agreement for a variety of reasons. One would be if one of the parties was less than forthcoming about financial matters. Another could be that one of the parties was coerced into signing it, which is why attorneys recommend to clients who are considering one that it should be negotiated and signed well in advance of the wedding date.