USA Marrying my Ex


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Hi, my ex-wife is now my current fiancee. We haven't set a wedding date but we've suddenly started wondering about the tax implications of re-marrying. I hope this forum can help. Here are the basis data:
First married 1991. This was the first/only marriage for each of us and neither had prior offsrping.
Two adult children, 26 and 23. The 23 year old is still on my health insurance.
Divorced in 2017. Divided about $3M in assets when we divorced.
Got back together in 2018, and are now engaged.

We each currently have about $1.7M in assets. We are both retired, living on investment assets and rental property incomes. Going forward, we'll probably both have $50K or less taxable income each year from rentals, no earned w2 income going forward. I may have some 1099 income from occasional consulting gigs.

When we re-marry, will there be material financial/tax implications that we will regret not better understanding and planning for?
If so, what are those?
Thanks for any feedback.
 
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kirby

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Based on the amounts you cite, you have the financial ability to hire a local CPA to plan this for you. I suggest that is your best course of action versus asking forum folks who have no knowledge of details of your financial situation nor access to your records.
 

Werner Reisacher

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First of all - congratulations to both of you! It takes two people with an open mind to admit that they made a mistake and open hearts to eventually find each other again. Not surprised, that such an attitude to life has resulted in your successful financial situations.
Being myself retired after a successful career in tax and finance, I have to agree with Kirby. There are to many issues that come to my mind that I could give you a straight answer to your question. The easiest way to find your answers is to have somebody run the "two versions" of tax filings though a software program. Don't forget to also include the "estate planning" in your research under the two scenarios.
As a general rule however, don't overlook the value of "purchase power". Managing funds at twice the value gives you much better negotiation power in handling your funds and protect your assets. A family foundation might also be a tool to consider.
Good luck!
 
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I have clients in similar financial situations. Middle aged with adult or near adult children. Each spouse brings into the marriage assets that were acquired prior to the marriage and they really don't need the other spouse's paycheck or income to maintain their independent lifestyle.

Consult with a tax pro in your area and ask them to prepare your tax return or a projection in two different filing situation. Married filing jointly and married filing separately. You may be pleased to find that the tax difference is well worth keeping your finances separate after marriage.
 

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