The financial risks of finding love later in life
<p>Well, they do say all is fair in love and war.</p>
<p>For many people who have gone through a divorce or lost a partner and found themselves lonely at an advanced age, the wonder of finding love again can be an amazing experience.</p>
<p>Unfortunately though, this joyful experience can sometimes be followed by potentially nasty financial implications that, if you’re not aware of, can leave you considerably out of pocket. </p>
<p>One key difference between new couple of a younger age and new couples who are in their later years is that the latter group doesn’t have as much time to build their wealth together, and tend to spend it all immediately.</p>
<p>Another cause of conflict is if a partner moves in and starts contributing to a mortgage, which may entitle them to some claim over the house even if it isn’t specifically spelt out in a will. Also, as Dianne Charman of Jade Financial notes, “The sad fact is that gold-diggers do exist. Even in the absence of gold-diggers, there are inheritance issues.”</p>
<p>The good news is that while there are risks that come with finding love later in life, there are also ways to ensure that the financial future of you and your partner will be sound.</p>
<p>Before moving in together, make a record of every the pair of you own and put in place a binding financial agreement with the help of a lawyer to detail how the finances will be split if the relationship breaks down. It’s recommended that individuals who are looking to formalise their relationship in later years be open about their finances and the level of financial and other support they want to give their children or elderly parents, and when they may be looking to retire.</p>
<p>Generally speaking though, the biggest cause of conflict comes when one partner passes away and will are contested, so make sure you spend the time and money to ensure that your specific will is as watertight as possible. A good will can enable you to allow your partner to live in the shared house until their death, but for the home to then be transferred to your beneficiaries.</p>
<p>There are many financial implications to finding love at a later stage in life that you need to be aware of, but they needn’t be considered a deterrent. By planning ahead and being honest you can ensure that money will never be a cause of conflict for you and your new partner. </p>
<p>Image: Getty</p>
