Are you an older couple finding love again, but worried about protecting your children’s inheritance in a new relationship?
Meet Susan (64), a retired teacher, and Robert (66), a semi-retired plumber. Both have lived full lives, including previous marriages and raising their own adult children. They each own their homes, have their superannuation, and have carefully planned for their respective families. Now, they’ve found love and want to sell their individual homes to buy a beautiful new shared home to live in for the rest of their lives.
Their greatest fear? That if one of them were to pass away, their assets would automatically go to the surviving partner, potentially disinheriting their own children – children they’ve worked hard to provide for. They want to combine their lives, but ensure the capital they each contributed remains their own, to be passed down to their respective families as intended. This is a common concern for older couples marrying again or entering a de facto relationship.
The Challenge of Blended Families and Later-in-Life Legacy Planning
Entering a new relationship later in life brings unique joys and considerations, especially when both partners have separate assets and adult children. This requires careful financial planning for a second marriage or cohabitation agreement for seniors. The desire to build a shared future is strong, but so is the commitment to safeguarding the legacy for your own children.
This isn’t about a lack of trust; it’s about mutual respect for each other’s financial histories and family commitments. The key is finding a way to enjoy your time together without financial ambiguity, while confidently knowing your inheritance plans for your children are secure.
Your Solution: Using a BFA to Protect Inheritances in Second Marriages
This is where a Binding Financial Agreement (BFA) becomes the perfect tool for asset protection in a new relationship. Often considered a “pre-nup for older couples” for those marrying, or a “cohabitation agreement for de facto couples”, a BFA is a legally binding contract that allows you and your partner to decide how your property and finances will be divided if your relationship ends, or upon the death of a partner.
A BFA allows you to clearly define what each of you brought into the relationship, ensuring that if something happens, your original contributions are returned to your respective estates. It acts as a transparent agreement that outlines ownership of assets like homes, superannuation, and investments, providing a clear path for their distribution. This helps to protect assets from a new spouse while still building a shared life.
Ensuring Your Children’s Future: Financial Agreements for Blended Families
One of the most significant benefits of a BFA for later-in-life couples is its power to protect your children’s inheritance in a new relationship.
It allows you to explicitly state that certain assets are designated to pass to your children from a prior relationship, even if those assets are now part of a jointly owned property or shared finances. This legally documented plan provides immense peace of mind, preventing potential disputes or unintended outcomes down the line, ensuring your wishes for your children’s financial future are honoured. This is crucial for blended family inheritance and estate planning in a second marriage.
Clarity, Respect, and Peace of Mind for Your Golden Years
For Susan and Robert, a BFA provides invaluable clarity. It’s an act of mutual respect, acknowledging each other’s financial past and future plans. By settling these key financial questions upfront with a financial agreement for a new relationship after divorce, they can enjoy their shared life together, free from lingering anxieties about their individual legacies.
Secure Your Legacy Affordably with SplitWise
Navigating legal agreements for your financial future can seem complex and expensive. You deserve affordable access to quality legal support that empowers you to protect what matters most.
Traditional family law can be costly, but SplitWise offers a smarter, more affordable way. Our platform, backed by family lawyers, makes the process straightforward and cost-effective. We provide the certainty and protection of a BFA at a significantly lower cost, helping seniors plan their financial future with confidence.