Financial tips for couples saying "I do" again

Scotia Private Client Group offers advice to people starting a second or third marriage

TORONTO, July 26, 2011 /CNW/ - With wedding season in full swing, many couples are discussing caterers, guest lists and venues, but financial planning may be the last thing on their mind. While getting ready for their big day, couples should also take the time to plan for their financial future. Financial planning becomes even more important in complex family situations, such as second or third marriages. For couples preparing to head down the aisle, Scotia Private Client Group offers expert advice to help them navigate through the potential complications of tying the financial knot.

"Sound financial planning is important for all couples," says Paul Fensom, Scotia Private Client Group Director, Estate and Trust Services. "While a first marriage is usually more straightforward as couples are just starting out, often a second or third marriage can bring about more complex questions regarding finances, established assets and specifically will and estate planning."

For people re-marrying, it is likely that each partner will come into the marriage with different levels of wealth or debt and one or both people may have children from a previous marriage.

"These are important factors to consider, especially in the event of a separation or death," continues Mr. Fensom. "Couples beginning a new life together often don't want to consider these circumstances but having these discussions and planning ahead is the best way to avoid legal issues or family turmoil down the road."

To ensure both the couple and their children are taken care of properly, Scotia Private Client Group advises couples to discuss the following before saying "I do":

1.	How will we merge our finances?
		When people are getting married it is essential to discuss where each partner stands financially as well as expectations for how finances will be managed within the relationship. For example, if one person comes in with significantly more wealth, expectations for shared expenses should be discussed.

2.		Is a pre-nuptial agreement or co-habitation agreement right for us?
		Discussing a "pre-nup" when planning a wedding can seem unromantic. However, the reality is that these agreements protect both parties by providing the foundation for determining how assets will be divided in the case of a divorce or separation. The same holds true for a cohabitation agreement.

3.	How will our children be taken care of when we pass on?
		Today blended families are increasingly more common. Couples starting a life together may have children from previous marriages as well as children together. To ensure that all children are taken care of, each partner needs a clear plan on how they want to support them in the event of a divorce or death. While splitting everything down the middle might be easiest, it may not always be the best approach.

4.	Do we need to set up a trust?
		Trusts are often seen as a tool only for the very wealthy, but in reality they are a practical and accessible option for almost any couple, especially if one or both partners have children from previous relationships. When considering one's full estate including property, a trust can be an affordable and sound solution to secure peace of mind.

5.	If we decide not to get married, what financial matters do we need to consider?
		Many people are deciding to skip marriage altogether but the reality is, whether or not they choose to marry, couples are considered common law in some provinces after one year of co-habitation. This means they could face many of the same legal implications as a married couple, making it equally important for a common-law couple to discuss these same questions.

"It's essential for couples to have these conversations before walking down the aisle," concludes Mr. Fensom. "Putting a will and estate plan in place helps to ensure clarity for couples who have family and financial situations that aren't as cut-and-dry as those in a first marriage. While these conversations can be a little overwhelming, working with a financial advisor can help couples through the process to ensure their biggest worry on their wedding day is remembering their vows."

For more information on will and estate planning, please visit: www.scotiaprivateclientgroup.com

About Scotia Private Client Group:
Scotia Private Client Group provides customized solutions to help high net worth clients build, preserve and transfer their wealth. Scotia Private Client Group consists of private client services from The Bank of Nova Scotia, The Bank of Nova Scotia Trust Company, Scotia Asset Management L.P., Scotia Asset Management U.S. Inc., ScotiaMcLeod Financial Services Inc., and ScotiaMcLeod®, a division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Scotia Private Client Group is a registered business name of The Bank of Nova Scotia, The Bank of Nova Scotia Trust Company, ScotiaMcLeod Financial Services Inc., Scotia Asset Management L.P., and Scotia Capital Inc. in the jurisdictions in which they carry on business. Estate and succession planning services are provided by The Bank of Nova Scotia Trust Company. For more information, please visit www.scotiaprivateclientgroup.com.

For further information:

Tara Wood, Narrative Advocacy Media, 416-644-4133, tara.wood@narrative.ca

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