Questions for Blended Families

Are you a parent in a blended family? Or planning to be one? If so, you need to get answers to a lot of financial questions. Getting everything out on the table is a big step toward making that happen. Today Rob West talks with Ron Deal and Gregg Pettys about the challenges blended families face. Ron Deal and Gregg Pettys are co-authors of The Smart StepFamily Guide To Financial Planning. Last time we talked about the Togetherness Agreement - a legal binding contract that you urge all spouses in blended families to draw up. But to do that, you have to answer some important questions about money first. You have a long list of them on your website, FamilyLife.com/Blended. First is, What are your financial obligations to your ex-spouse, such as child support and alimony. This question represents the kind of life you are going to have as a couple. The divorce decree will outline details but the moral issue is following through with it, on issues such as child support. And then there’s the question of additional support for children from the first marriage - what are those? Some divorce decrees will include shared expenses such as educational costs, medical costs, and extra-curricular expenses. If you’re on the receiving end, the question is How should we use what we receive in child support and alimony? And, What do we do when we don’t receive scheduled child support? Child support needs to go to the care of the child. The last thing you want to do is run to court, but if there's a habitual problem you might need to involve an attorney. When one of us dies, who will receive the assets brought into our marriage? It's important to do some comprehensive financial planning, seeking expert advice and tax planning. Invested assets and life insurance need to be planned around. The fundamental questions spiritually speaking is 'how do we care for everyone', including the people who are not in the family generational line. Next is, What are the financial plans for your children if you die or are unable to work? And if you don’t have a plan, you need to get one, right? A Togetherness Agreement is a plan that is mindful of how to proceed should one of you pass away. Not 'my kids' and not 'your kids', but a 'togetherness' plan. Disability and life insurance are important equalizers for income replacement. They say you don’t just marry a person - you marry their whole family. So the question is, Do you have any financial commitments to your parents, siblings, or other family members? It's important for couples to communicate about what is important to them, for instance a child inheriting a business while still providing for the blended family. A QTIP trust provides assets to a surviving spouse and the reverts to the children from the original marriage at their passing. On this program, Rob also answers listener questions: How should you proceed with purchasing a home if you filed bankruptcy a few years and now have funds for a downpayment and have rebuilt your credit score to 760, but are unsure about the current interest rate environment? Should you invest $20,000 in a rental property or make it a flip and sell if you have $33,000 in savings and currently have a $1400 monthly surplus? RESOURCES MENTIONED: The Smart StepFamily Guide To Financial Planning: FamilyLife.com/Blended. Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29