The Financial Benefits of Marriage

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While money should not be a motivating factor for getting married, there is no harm in reaping the benefits that come with tying the knot. And in regard to finances, there are plenty. Love and money do go together, as it turns out.

There are a few caveats that make marriage not-so-favorable for certain couples, but generally speaking, the positives outweigh the negatives. So, if you?re planning to get hitched, you might want to see how your new union could benefit both your and your spouse?s financial standing.

Disclaimer: Since laws vary from country to country, this article will focus solely on US-based marriages. However, most of the benefits covered here come in some shape or form in other locations as well.

Taxes

Income taxes are far too complicated of a topic to cover in just one article, so do your own research or consult a financial advisor. But the basic message is that you are likely to save on your tax bill by being married. This isn?t always the case, however. If both partners are high earners, filing jointly as a married couple could push you into a higher tax bracket (meaning a higher percentage of your income will go to taxes). On the other hand, if one partner earns significantly less or no income, the overall tax bill will go down.

Filing separately can be useful in some cases, but could affect your ability to tack on various deductions (such as child tax credits) or affect IRA contribution limits. These can save you money in the long run. Hence, once again, if you see your tax bill come out at an unexpected amount, it may be wise to talk to a professional about how to handle your situation.

Health, Auto and Home Insurance

If you?re a younger couple, social security might not be on your mind but it is necessary to know if you?re planning on staying in a relationship for a while, as there are tons of financial social security benefits that come with being legally married.

For starters, when you start receiving checks, you will either collect your own payment or 50% of your spouse’s ? whichever is bigger. So, if your spouse has a social security check that?s more than twice yours, you will be better off. And should the high-earning spouse pass before the low-earning spouse, the low-earning spouse will be eligible for 100% of the social security of their partner.