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Blended family finances

Yours, mine and ours: Navigating the minefield of blended family finances

Updated:
2010-03-25 11:59
Published:
2009-10-26 09:46
By:
Camilla Cornell

Make it work

Vancouver certified financial planner Diane McCurdy agrees wholeheartedly. By the time couples enter a second marriage they often have substantial assets, sometimes debts, and most will be either paying or collecting child support, she explains. “None of that should come as a surprise to your partner after you marry. You want full financial disclosure.”

Furthermore, she recommends sitting down to hammer out a list of financial goals both for you as a couple and for your family. Do you aim to buy a house large enough for all of you? Do the logistics of ferrying kids to ex-spouses and extracurricular activities require you to buy a second vehicle? How will you manage educational expenses? Will you blend finances or keep separate accounts?

Kelly, 45, also suggests considering a pre-nuptial agreement, although she admits she and her husband didn’t follow that savvy advice, even though he had two young daughters when she married him. “You really don’t want to think about what would happen if you don’t make it,” she says.

Think fair, not equal

Kelly’s husband was a widower when she met him, and his former in-laws have continued to play a role, emotionally and financially, in the lives of his daughters. The girls’ university education was covered, as well as other expenses over the years. But the reality is different for the three sons Kelly and her husband had together. “The boys are already saying, ‘How are we going to go to university?’” Kelly says. “We joke about it. We’ll say: ‘Have you heard of this thing called a part-time job?’”

The fact is, contends Kelly, children are fully capable of understanding that families have differing amounts of time, money and energy. Even biologic- al parents who are together have been known to give one child a bigger present for his 16th birthday, for example. In other families, one child’s passion for hockey may eat up more of the family’s available cash.

“You just tell the kids straight out that you and your ex-spouse simply don’t have the same resources as Suzy’s parents,” advises McCurdy. The key thing, she believes, is to take pains to treat everyone the same emotionally, if not financially, and make all the kids feel welcome.

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Pagination Documents

Page 1:
Blended family finances
Page 2:
Make it work
Page 3:
When the Ex gets involved
Page 4:
Plan for the future

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