Marrying in mid-life or beyond? Consider having these financial conversations first.

While overall marriage rates in the U.S. have declined opens in a new window since the 1980s, the percentage of first marriages among Americans ages 40 to 59 has quadrupled opens in a new window since 1990. Second and third marriage rates among Americans ages 55 to 64 have also increased opens in a new window.

In other words, more and more Americans are choosing to wed later in life, which presents a unique set of financial and logistical considerations.

If you’re planning to combine households, finances, or families in mid-life, below are some topics to consider and plan around. Having thoughtful conversations about finances with your partner can help ensure a smooth transition into this new chapter of life.

First: be open about your financial situation and priorities.

Honesty and transparency are crucial when it comes to finances. Before walking down the aisle, have candid discussions about both of your financial situations, including:

• Debts: are there any outstanding loans or credit card balances that need to be addressed?
• Investment strategies: how do you approach investing, and are your risk tolerances compatible?
• Retirement plans: what are your retirement goals, and do you have the savings to support them?

Once you both have a better understanding of each other’s financial picture, you can decide whether to keep finances separate, combine them, or opt for a hybrid system.

• Keeping finances separate means that each individual keeps their accounts, assets and debts as their own.
• Combining finances can mean turning separate checking and savings accounts into joint accounts, getting joint credit cards, or buying real estate together.
• A hybrid approach is something in between; for example, some couples choose to share a joint checking for regular or shared expenses like mortgage payments, home improvements and utility bills, but keep pre-existing assets like investment or retirement accounts apart.

Each approach has pros and cons, so it’s important to choose what aligns with your comfort level and goals. If either or both of you have a financial planner, tap them for assistance.

Decide where you want to live.

Coming together later in life may mean that both you and your partner are home owners. It’s also possible that you live in different zip codes or even different continents. As you decide whether and where to cohabit, make sure to keep in mind proximity to family, friends and trusted healthcare providers. It’s also wise to take into account each homeowner's current interest rate, mortgage terms and home equity, as well as the tax implications of selling.

Consider your retirement and estate plans.

Marrying later in life can mean that you and your partner already have estate plans, retirement savings, life insurance, and even long-term-care plans in place. If you don’t, it’s important to consider consulting an estate planning attorney. Create an estate plan now, especially if either of you have children or other dependents. Key steps include:

• Updating beneficiaries: review and update beneficiaries on wills, life insurance policies, and retirement accounts to reflect your new marital status.
• Creating or revising your will: having a will in place can help ensure your assets are distributed according to your wishes.
• Considering whether to create any trusts: a trust can help you protect certain assets for your children or other heirs.

Taking these steps can both help to prevent misunderstandings or hurt feelings, especially among any adult children, and also ensure that your legacy is handled as you intend.

Get up to speed on your government benefits.

Getting married after 50 can have significant implications for government benefits. Make sure to consider:

• Social Security: if you’re receiving widow or widower benefits, marrying before age 60 can affect your eligibility.
• Supplemental Security Income (SSI): once you marry, your spouse’s income could impact your SSI benefits.

Make it a priority to update your marital status with the Social Security Administration and review how your marriage may affect your benefits. A financial advisor can also help you make informed decisions.

Talk about whether a prenuptial agreement makes sense.

While not the most romantic topic, a prenuptial agreement can be a practical tool for protecting your financial assets. This is especially important if you:

Have significant assets you want to keep separate.

While it may feel awkward to broach, a prenuptial agreement can offer peace of mind for both partners and their families.

Think about how you want to manage your health and wellbeing as you age.

Depending on your age, you may be considering long-term care or other medical benefits and how to maximize them to live the life you want. Be sure to discuss your desires with your partner, as medical bills are the biggest expense for older Americans. Consider:

• What kind of care you want: do you envision living independently or moving to a retirement community of some kind? Do you have family who will take care of you, or will you have to rely on outside assistance?
• Costs of care: if you can afford it, consider putting long-term care insurance plans in place or creating other financial structures to ensure that you’ll get the care you need, no matter what the future holds.

Planning ahead can help you avoid financial stress and ensure that you get the level of care you desire.

Set your marriage up for success.

Marrying later in life can bring newfound joy and fulfillment and requires careful planning to address the practicalities of combining two established lives. By being open about finances and honest about your goals for the future, you can create a foundation of trust and security that will support the marriage now and in the future.