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Getting married in middle age can be “a total injection of joy and fun,” as comedian Miranda Hart told the world following the revelation of her own wedding at age 51 to Richard Fairs, a 60-year-old divorced father. of two children.
But middle-aged lovers should clean their rose-colored glasses before getting married.
In the worst case scenario, you could lose your pension; someone else’s children could inherit your money; Your credit score could be damaged and your state benefits could be cut.
Even more tragic, Mr. Right may turn out to be Mr. Wrong, and that could mean all the financial problems that come with going through a divorce.
Here, Money Mail looks at seven common mistakes you should know about and how you can protect yourself before you jump.
New chapter: Getting married in middle age is often a cause for celebration, but there are many financial dangers to be aware of
1. You could lose your private widow’s pension
If you are widowed and receive your deceased spouse’s pension, it could be taken away from you when you remarry.
This particularly affects members of some older public sector schemes. For example, the Teachers’ Pension Scheme rules state: “Widow and common-law pensions payable in respect of a member who retired on a date before January 1, 2007 will continue to be subject to cessation in the event of a new marriage, civil union or cohabitation of the beneficiary”. .
Other public sector schemes have similar rules. “This is a terrible situation and effectively penalizes older women who are statistically more likely to receive a spousal pension,” says Penny Cogher, pensions partner at law firm Irwin Mitchell.
And he adds: “There was so much public outcry that the law was changed in this regard for army pensions, but, unfortunately, not for other public sector plans.”
He adds that people should check their own plan status to see if there will be financial consequences if they remarry.
Go to your pension plan’s website to read the rules (each plan is different) or call the pension plan administrator. You can use the government website to locate contact details if you know the name of the employer or pension provider gov.uk/find-pension-contact-details
2. You could receive a smaller state pension
Widows and widowers can sometimes inherit from their deceased spouse an additional payment on top of their new state pension.
You may be eligible if you married before 6 April 2016 and your partner reached state pension age before this date, or died before this date but would have reached state pension age on or after that date.
Just Married: Comedian Miranda Hart got married for the first time at age 51
However, if you remarry or form a new civil partnership before reaching state pension age, you will lose your entitlement.
Remarriage after retirement age does not affect any state pension you have already started collecting as a widow or widower.
Steve Webb, former Pensions Minister and partner at pensions consultancy LCP, says: “Those receiving a state pension as a widow or widower can remarry without this affecting their rights.” But those who were due to receive any inherited state pension upon retirement from a deceased spouse will lose that right if they remarry before retirement age.”
Please contact the Government Pensions Service on: 0800 731 0469 to check your specific circumstances.
3. You could lose your benefits
If you get married or remarried, register a civil partnership or live with someone as a couple, any means-tested benefits you receive, such as Universal Credit, Pension Credit, Housing Benefit or Tax Support Municipalities, may be affected.
Your partner’s income is included as part of an overall assessment of your household eligibility.
Notify the office that pays your benefits as soon as possible after your marriage.
If you receive support from your ex-partner for yourself, it may stop, but your child support (also called “child support”) will not be affected.
4. Your children could be denied inheritance
When you marry, your new spouse automatically receives rights to all your assets and personal belongings in the event of your death, plus the first £322,000 of the estate and half of the remaining estate.
Clare Moffat, pensions expert at Royal London, says: “In England, Wales and Northern Ireland, there is a general rule that a remarriage will revoke any existing will.”
Be sure to make a new will that reflects your wishes.
Married couples often draw up so-called mirror wills, which are identical wills that leave their entire assets to each other. However, if either of you marries with children you would like to inherit, you will need to include provisions in your will.
Otherwise, if you make a new will leaving everything to your new spouse, if you die first, he could leave everything to his own children, leaving yours with nothing.
Go to gov.uk/inherits-someone-dies-without-will to check it out.
The rules are different in Scotland. Go to: gov.scot/collections/what-to-do-after-a-death-in-scotland
Trust: If you make a new will leaving everything to your new spouse, if you die first he could leave everything to his own children, leaving yours with nothing.
Lisa Spearman, private client partner at Mercer & Hole, of public accounting firm Mercer & Hole, says: “It is essential that there are full and clear discussions among the entire family and then make wills that reflect your wishes and ensure you understand what’s going to happen.”
Harriet Errington, a partner at the Payne Hicks Beach law firm, adds an additional warning if you help your partner’s children. ‘If you begin to provide financial support for your partner’s children after your marriage and you die without making adequate financial provision for those dependents, your estate could potentially be vulnerable in respect of a claim under the Inheritance (Provision for Families and Families) Act. Dependents) of 1975. ‘, he warns.
If you want your spouse to be cared for throughout their life, should you predecease them, but want their estate to eventually pass to your own children, you can specify this in your will.
You will need the advice of an attorney to do this correctly.
Another option is a prenuptial agreement: an agreement made before marriage about how your finances will be divided if you separate.
These are not legally binding, but as long as you both get independent legal advice and explain why you want to divide assets and debts in this way, a divorce court will consider them if the marriage breaks down.
5. Your credit rating could be affected
If you open a checking or savings account (or any other financial product) with your new spouse, your credit records will be linked. That means if your partner has debt, misses payments, or makes other financial mistakes,
could affect your ability to borrow.
Your credit records are not automatically linked when you get married, only when you sign up for joint financial products.
But Spearman recommends that older couples have at least one joint account to make life easier for the surviving spouse when the other dies.
Widows and widowers can inherit from their deceased spouse an additional payment in addition to their pension. However, if you remarry before retirement age, you will lose your entitlement.
“In the event of death, the bank accounts of the deceased are frozen until probate is granted,” it states.
“However, the survivor can usually access joint accounts. It may make sense then to have at least one joint account with cash to pay, say, six months of regular household bills in the period immediately after the death.
When you’re newly bereaved, not having cash is something you shouldn’t worry about.’
6. You could pay more taxes when you sell your house
Homeowners pay capital gains taxes on any gains they make from selling the property, unless they sell the home in which they live. However, married couples only have one exemption between them, while two single people have one exemption each.
It means that, for example, two people in a relationship who own their own home could each sell their property without incurring capital gains taxes.
But if the couple were to marry, they could only sell one of the properties without incurring capital gains taxes; the other would be treated as the couple’s second home and would therefore be subject to capital gains.
If either of you are planning to sell soon, it may be worth doing so before the wedding. But this is a complex tax area and you should seek professional advice before making any changes.
7. Your online fiancé could be fake
Older age marriages have doubled in 20 years: 82,912 people over 50 (including around 1,000 over 80) married in 2022 in England and Wales.
A year later, 4,160 cases of romance fraud were recorded and £68 million was stolen, according to UK Finance.
Romance scammers especially bombard older victims, expressing their undying love, showering them with praise, and pretending to be interested in the details of their lives.
“There is often a gang of criminals working 24 hours a day, so they keep a flow of messages going at all hours of the day and night,” warns Sarah Coles, head of personal finance at investment platform Hargreaves Lansdown.
He adds: ‘You should also be careful about revealing too much about yourself or turning on your webcam. If at any point they ask for money or personal information, this should raise alarm bells. Don’t separate yourself from either of them.
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