Marrying late may sound interesting. However, it is not. Most couples tying a wedding lock at 50 suffer from financial issues. One should clear the tinted spectacle before doing so. You lose net worth if you marry a man or a woman with children. Someone else’s children may legally inherit your estate and money. Moreover, you will be responsible for the alimony if the marriage does not last. It may further dent your finances.

It is thus advisable to analyse the financial pros and cons of the wedding decision. You would not like to live frugally even after retirement. Therefore, knowing your financial situation and discussing it with your partner is ideal. He/she would understand your insecurities if they want to marry you. Ensuring clarity would help you decide whether you should marry that late or not.

The blog lists the marriage traps that could affect your financial and retirement aspects. It is important to know this to ensure mental and monetary peace.

What financial threats may you face marrying post-50?

Everyone needs a partner to ensure a comfortable lifestyle. Whether you are divorced or single, marriage seems attractive.  It grants you life security, emotional assistance and companionship. However, it comes with some compromises. Know about the other person’s personal and financial situation. It helps you understand their goals and dreams.

Similarly, it is a sign that certain financial issues may prove troublesome after marriage. So, here are some financial threats you may confront with late marriage. Knowing these will help you decide right and eliminate obstacles to happiness:

1)      Your state pension may reduce

In the UK, widows and widowers receive extra payment with the new state pension. The person may be eligible if you got married before April 6, 2016. You may receive the pension or extra pay- if your partner reaches state pension age before the date. Alternatively, one may get it if they died before this date and reached the pension age on after it.

However, a second marriage exempts you from any such benefits. You may lose your entitlement by forming a new civil partnership. Individuals tying the knot after 55 or 58 ( post-retirement age) do not lose the state pension.

2)      Could lose your private widow pension

Widowers may no longer receive the pension of their deceased spouse after remarriage. According to Teacher’s Pension Scheme rules- “Widow, Widower and civil partnership pensions, payable regarding a member retiring before 1^st January 2007, will cease after re-marriage.” It could affect the women in their 60s to ensure a comfortable retirement.

It is a harsh rule; one must follow it. It may affect one’s ability to ensure independence even after re-marriage. Identify the best prospects before marrying someone else. Check whether he/she supports financial independence. Moreover, identify whether the person can provide financial security enough for the retirement cover.

Meanwhile, you would need to look after your bills all alone. Check your savings after the pension stops. You may seek help from your new partner. However, if the bill is below 10000, you can settle it individually. It is possible if you own another income source than just a pension.  You may clear the dues with quick monthly installment loans with no credit check requirement. It is a short-term financial facility that backs you up for critical bills. You can get it without affecting your credit score. Moreover, small and equal monthly payments help budget easily.

You may get it instantly by revealing the secondary income. It helps settle the bills and start your new financial life post-marriage.  It is better than depending on your partner for the bill payments.

3)      You may lose your government benefits

You may lose government benefits if you marry or re-marry someone registered under a civil partnership. It could be anything you receive as financial assistance from the authority. For example- Universal Credit, Housing benefits, rental support, etc.

The respective delegates assess the financial affordability. Thus, they may undertake your new financial and marital status. Therefore, if your total earnings exceed the eligibility, you may lose it all.

Usually, one must report the authority after the marriage. It prevents you from this inspection. Under this, the financial assistance that your ex-partner provides for children may also be discontinued. However, if you receive child benefits, you may continue it.

4)      Your children may lose the inheritance

Setting up a new marital alliance comes with adjustment and power. It may include sabotaging the child’s future. For example- if you re-marry another woman of your choice, the rights are transferred to her. She legally becomes part of your estate.

It is her right to claim what you own. Moreover, all your personal property is transferred to her name. It is only after you leave the world. According to a pensions expert at Royal London, “The new wedding alliance will revoke wills the partner owns.” Thus, it may threaten your child’s future existence.

It is better to discuss the issue with your new partner. Check whether he can develop a new will for the children’s security. It is essential as you cannot leave your children without inheritance. They may end up struggling later in life.  Making smart decisions before and quickly after marriage can safeguard your and your children's future. However, you need to have a good bond with your new partner to succeed. Alternatively, it may not end as expected.

However, be conscious of some aspects before constructing a new will.  You create a new will by leaving everything to your new spouse. This may mean that they may leave better options for their children than yours. So, be considerate regarding his preference and help him do the right thing..

5)      Your credit score may fall

Entering a new wedding alliance means attaching your finances, too. Opening a new credit or bank account implies affecting the credit history. You may link it with your new partner’s account. His credit history is affected if he has debts, pending payments or CCJs. Linking your finances with the new partner may also impact your credit. It may prevent you from getting better options on credit cards and loans. You may consider a joint account if re-marrying at 65 or older.

It eliminates the hassle of claiming funds after your partner dies. Alternatively, linking your finances with the other person should be your independent decision. Identify what kinds of debts the person has. Analyse the impact of such dues on your current finances and credit score. It will help you decide right and protect your finances.

6)      Selling a home may prove expensive

One must pay capital gains tax after selling the property. It is the tax one pays if one sells the property for a higher price than the original. It is known as the profit-based tax. Singles have exemptions on capital gains tax. However, married couples share only one exemption. For example- two people in a relationship before marriage can sell their home individually. They don’t have to pay tax on it.

However, you can only sell one property without paying taxes as a couple. You must settle the tax dues on the other property sale.  It is because the other residential is considered a second home, not a primary residence. Thus, try to sell the home if you inherit one before the marriage. However, a leading property expert may help you with the best suggestion. Consult home to decide right.

Bottom line

There is a lot on the plate to decide before tying the knot. Marrying the second time is tough emotionally and financially. Thus, don’t leave any document unturned. Carefully analyse your finances, such as assets, debts, and liabilities. Check what you may lose or earn with this new marriage alliance. Identify the best ways to deal with the inheritance part. Ensure that you have another will in your children’s name. It secures their future.