Lets take a look at some critical financial how to’s within the blended family environment.

Creating Stability and Harmony  

Blending families is a stressful time for all involved.  It is important that everyone feel loved and included.  A couple of key ways to do this are by:

1) Keeping the lines of communication open and being upfront about your respective intentions.

2) Updating your wills to reflect the new reality.

3) Operating with more than one checkbook. Having each spouse contribute to the family checkbook gives him or her a sense of ownership.  Separate checkbooks can be used for expenses that come up outside the realm of day-to-day needs for extra security.

Managing your day-to-day living

Just when you had it all figured out, things have changed.  As a result you should:

Figure out your combine net worth                                                     Prepare a list of income and expenses                                             Decide how the bills will be paid

Wealth Creation and Preservation

Baby Boomers have had few children and more divorces than previous generations (Shutterstock) With life expectancies increasing this can prove troublesome since 70% of all care provided to seniors comes from informal networks like children and spouses.  Baby Boomers in blended families may not be able to count as readily on this type of help so their money will have to last longer and provide a stream of income.  Dividend paying stocks, which provide the income stream and preserve purchasing power, should become an increasingly important part of their portfolio.

1. Maintain a healthy balance sheet.  Keep debt to a minimum.

2. The team approach.  You are both now part of a new team and will want to surround yourselves with a group of trusted advisors such as an investment advisor, estate planning attorney and accountant.  Depending on the complexity of the family circumstances, each spouse may want to have their own set of advisors.

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