Navigating Finances as a Blended Family

Money matters can get complicated when two families unite. Planning is key.

- ELLA VINCENT

NONTRADITIONAL families are becoming more traditional. For more than 20% of opposite-sex couples who lived together in 2021, at least one partner had children with another partner, according to the most recent data available from the U.S. Census Bureau. And there were more than 2.4 million stepchildren in the U.S. in 2021, according to the Census Bureau.

If you’re planning to become part of a blended family, consider these financial issues as you and your spouse start a new life.

Prepare with a prenup. Before you tie the knot, consider signing a prenuptial agreement (and don’t wait until the last minute to accomplish this task). A prenup can determine how your assets will be divided among your children from a past marriage along with any future children or grandchildren you have with your current spouse. For instance, if you have a house from your first marriage that you want children from that marriage to inherit, you could designate that as separate property in your prenup. Additionally, your prenup can spell out whether you or your partner will receive spousal support if the marriage ends, which could be critical if you have minor children from your first marriage, your current marriage or both.

You may want to use your prenup to outline whether you’ll be responsible for debts your spouse brings to the marriage, which is particularly important if your spouse is paying child support. A prenup will help clarify how you’ll handle premarital debt as well as debt you incur after the marriage. Without a prenup, a judge could hold you responsible for your spouse’s debt if you divorce in one of the nine community-property states, even if the debt is not in your name.