When you’re young and in love, the vows of “for richer, for poorer, and in sickness and in health” are so romantic. However, for many older adults — especially financially independent women, marriage is not such an attractive “proposal”.
Millions of women who are divorced, widowed, or financially stable after a successful career, are choosing independence over commitment. The varied paths their lives have taken brought them to the same place…an unwillingness to co-mingle their assets, and a desire to live on their terms.
Of the approximately 22 million households in the United States with a net worth of $1 million or more, just over 7 million, or one-third, are led by a woman, many of whom are age 58 or older. This is the first generation of women to accumulate that amount of wealth at such a high percentage. It is also the first generation of women to indicate they may be interested in finding a partner or a companion, but they are not interested in marriage.
There are many considerations when it comes to legally combining your resources later in life:
How would marriage affect each partner’s tax status?
Where do you live? Whose house do you sell? Do you purchase equity in the now-shared property?
How do you structure your wills to care for each other while still protecting the inheritance of your children and grandchildren?
How would marriage affect your social security benefits as well as any pension or retirement plans?
And then there are the physical and emotional considerations. Many older adults, women in particular, worry that committing later in life will lead to becoming a full-time caregiver. After what has often been a life of caring for children, husbands, and aging parents, the fear of surrendering their independence to become a “nurse and a purse” prevents many women from seeking a romantic relationship.
Should Cupid’s arrow still strike deeply, there are ways to mitigate many of the concerns of a comingling of assets. Prenuptial agreements can be structured to offer protection to both parties. Multiple types of trusts that can also be set up to ensure your heirs are taken care of.
At One Financial Services, we think of our clients as family, and as such, we are always here to help guide you through life’s most important decisions.