A blended family, also known as a stepfamily, is a family unit composed of two people with children from previous relationships coming together to start a new family.
When blending finances, new partners may need to re-allocate assets equitably to consider partners and children from previous and new relationships.
Financial infidelity fosters mistrust in relationships and can have a devastating impact on a couple’s relationship and children’s future.
It is crucial for all couples, including those who are building a blended family, to discuss their spending and saving habits, expectations from each other, and financial philosophy.
Ideally, couples should create a joint financial plan, including savings goals, family budget, income sources, debt payments, net worth target, investments, and retirement plans.
Couples must know if their partner owes alimony, child support, or other payments mandated in the divorce settlement.