Do you have a blended family?
May 14, 2014
Information from a Vital Statistics Report shows that about 75% of divorced persons eventually remarry and about 65% of remarriages involve children from the prior marriage and form blended families. Also 60% of all remarriages eventually end in legal divorce. So, blended families are not out of the ordinary anymore. More and more divorces and remarriages are making the blended family more prevalent. With the blended family more common comes the questions of family finances and do you keep you finances separate or blend your finances with your family.
Many blended families that I work with keep their finances separate. But, there are also a number of blended families that merge their finances. When you have to be careful is when allocatng money for children's expenses, especially when there are mutliple children at various ages and an unequal financial situation.
Many blended families that merge their finances can have issues with college expenses and can be especially difficult when the blended family increases the number of kids in college at one time.
For blended families I strongly urge a prenuptial agreement especially if there are kids or a busines involved. You want to protect yourself and your children financially.
Blended families always question if they should merge their retirement and other accounts together. Retirement accounts are in your name only so you cannot merge the accounts together but I would look at your acounts all together so that you know your complete allocation and all your investments and accounts work together. I would also look at the accounts together at least once a year from an allocation standpoint to make sure your money is working together and hard enough for you.