The number of non-traditional households in the United States — those headed by divorced or never-married individuals — is on the rise, and awareness is growing about financial planning challenges that are specific to them.
Some of these challenges may include the following:
- Unmarried couples are not afforded automatic protections such as legal and property rights, medical decision-making, and wealth transfer.
- Certain tax provisions are only available to married couples, such as unlimited gifts between spouses and an unlimited estate tax exemption.
- Children from previous marriages may present special considerations for financial planning.
- Marital status may also have an impact on retirement planning.
Non-traditional families face unique planning challenges that require thoughtful solutions. Advisors who remain well informed about the unique needs of non-traditional households may be better positioned to compete for business.