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What Are The Financial Perks Of Getting Married?

Lisa JacksonOctober 20, 2021, ,

When planning out your happily-ever-after with your partner, finances are one of the essential aspects where you need to pay attention. Statistics show financial issues to be one of the most common reasons for disputes in marriage and divorce. On the other hand, ironing out the financial intricacies beforehand can lead to more smooth-sailing marriages.

When discussing these financial aspects, the question is; how will marriage affect your finances?

Focusing on the upside, we brought in a panel of experts to explain which financial benefits come with being married.

Jamie Hickey is a Certified Financial Planner and Founder of coffeesemantics.com. According to Jamie...

There are financial perks of getting married. Saving money and sharing costs with your partner is one thing to mention here. Married people, on average, save more than single people and they're less influenced by social pressure into making purchases that they know they can't afford!

The most typical way that marriage helps finances is shared responsibility for major expenses like a mortgage, car payments, groceries, daily living expenses, etc. When you share these expenses with your spouse, it can result in substantial savings at tax time.

Married couples enjoy a higher tax bracket for two reasons;

First, many of the deductions and credits which are no longer allowed for singles become available to married filers.

Second, a spouse is permitted to claim a basic deduction of $5,700 in most cases. The result? Higher taxable income per couple rather than just one individual's taxable income.

Married people have an increased ability to shield themselves from the general 3% federal income tax obligations with strategies such as investing in their children or using medical expenses or real estate taxes against current dollars earned by the household each year - something that singles cannot do so easily since they can't ordinarily deduct anything from someone else's earnings on their own personal return.

Guadalupe Sanchez, budgetinginblue.com. According to Guadalupe...

One of the financial perks of getting married is opening a joint bank account and qualifying for the FDIC (Federal Deposit Insurance Corporation) insurance of up to $500,000. If your bank were to close, you would be guaranteed up to $500,000. That's great because if you don't have a joint account, you would only be insured up to $250,000.

Getting married and managing finances as a couple is probably on top of your priority list, so make sure you start early. It's important to know your options when it comes to getting married and understanding how to best manage your finances before they manage you!

Chris Panteli is a Small Business Owner, Finance and Investment Expert, and Founder of LifeUpswing.com. According to Chris...

There are a number of financial perks that come with getting married. First of all, you can now share a single household and set of bills, which could result in a decrease in your living expenses. In addition, you may now be able to qualify for a credit card as a couple, as opposed to as two individuals. 

In addition, you now have the ability to open a joint checking account, which can help with building your credit history. Finally, you have a new tax filing status, which can result in lower tax liability for you.

Alan Harder is a Mortgage Broker; AlanHarder.ca. According to Alan...

Social Security benefits are a financial benefit of marriage. When you make a commitment to care for one another in sickness and in health, you become eligible for certain Social Security benefits. Spousal benefits, which are available to qualified couples, allow one partner to collect up to 50% of the other's Social Security payments. 

If the worst-case scenario occurs and one spouse dies, Social Security survivor benefits kick in. When one spouse dies, the remaining spouse is eligible to receive the deceased spouse's retirement benefit payout. In general, the surviving spouse must be at least 60 years old to qualify for survivor benefits, with full benefits beginning when the widow or widower achieves full retirement age. 

Chris Morgan is the Credit Expert at Credit help info. According to Chris...

Besides granting you a life-long companion to experience life with, marriage can give you financial benefits. As a financial and credit expert, I have observed that married couples are more likely to increase their wealth. Besides combining incomes, married couples have privileges that can improve finances.

Better mortgage deals. Mortgage lenders prefer married couples because of the high probability that they’ll be able to pay off the mortgage, plus interest. Compared to non-married couples or single people purchasing a home or property, married couples are considered safer. Couples are more likely to be offered better deals and lower interest rates.

Health insurance is cheaper to maintain. Insurers charge more for a single policy than a combined one. Though one spouse may have more coverage through an employer than the other spouse, health insurance costs less when you add your spouse to the plan. In addition, some benefits are transferable to your spouse.

Lea Satterfield, Founder, and CEO of MPower Co, is a graduate of the Personal Financial Planning Program at the University of Missouri. According to Lea...

People want to tout a significant number of financial benefits to being married. Most of them are insignificant when the cost savings is replaced with the cost of a wedding, honeymoon, and time spent changing your name on every account that is left, etc. 

For instance, there is the chance that the overall income tax bill will go down, but it is dependent on what income level and tax benefits (credits and deductions) each individual brings to the relationship. Two individuals can streamline finances into joint accounts without being married. The process to open a joint account is the same for two non-married individuals and a married couple opening a joint account.

There are three things, though, that are absolutely impacted by being legally married and can really have a significant financial impact. 

First, benefits under Social Security are affected. Single individuals are only entitled to benefits based on their own earnings. However, married individuals can claim up to 50% of a spouse’s benefits. So, for individuals who don’t pay into Social Security or are at a low-level benefit, marrying a person who does or is at a high-level benefit can increase income in retirement years. Additionally, if one spouse dies, a surviving spouse may be entitled to survivor’s benefits. Non-married couples aren’t entitled. 

The second area to think about is estate planning and end-of-life directives. States give precedence to spouses for inheritance and the ability to make end-of-life decisions. So, if the goal is to have a significant other make legal decisions and inherit assets (unless titled with someone else or a different beneficiary is named), marriage can take out a lot of ambiguity; however, having legal documents in place on top of marriage can give others peace of mind.

The final one has more options with respect to employee benefits, specifically insurance. Being married gives greater opportunity to select what health care policies are most advantageous for the couple as a whole. 

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