Saying “I Do” Can Improve Your Finances

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Marriage, jumping the broom, tying the knot, taking the plunge, getting hitched… Whether you are pro, or con, marriage can actually help you improve your finances. Sure, that’s not a very romantic idea, but it is true. Joining forces can be good for your emotional health and your financial wealth.

Here are just a few ways that tying the knot can help improve your financial standing.

Greater sense of security – spouses can rely on each other.

Legal protections – famously, spousal communication is privileged. But spousal protections go much further and extend to dividing business income, and claiming Social Security benefits.

Unlimited marital deduction – Spouses can pass unlimited assets to each other at any time, tax free!

Social Security may be higher (if one spouse is lower-earning).

Piggyback on benefits – health insurance, auto insurance, etc., cover your spouse and may open opportunities for policy premium discounts.

Less tax burden, ‘marriage bonus’ (if one spouse is low, or non-earning spouse).

Greater wealth building opportunity – spouses generally share the same financial goals and can work together to build wealth using tax, income, real estate, and various other strategies.

Spousal IRA for non-working spouse – this is a great benefit for a stay-at-home spouse to be able to plan for retirement.

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When you do jump the broom, don’t forget to review titling on all financial accounts including bank, retirement, and investment accounts as necessary. Be sure to also review and update your beneficiary, pay-on-death/transfer-on-death (POD/TOD) forms. Critically, you need to review and revise your estate planning documents and insurance policies. After all, you wouldn’t want an untimely death after starting your new life that unintentionally leaves your estate to an ex-spouse or sibling if that wasn’t your intent.

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As an independent Certified Financial Planner™, I can help you prepare for your new financial life.  No matter where you are in life, a CFP® professional can help you create a financial plan for today and tomorrow. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #marriage #income #estateplanning #IRA #CFPPro #LetsMakeAPlan