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Here are five topics you will want to take up with your intended spouse right away to ensure your best financial interests as individuals and as a couple are protected in your new union. For example, the Revised Pay As You Earn repayment plan calculates your payments based on your combined household income, even if you file your taxes separately. Keep in mind that state laws regarding estates vary. If you feel disconnected or frustrated about the state of your marriage but want to avoid separation and/or divorce, the marriage.com course meant for married couples is an excellent resource to help you overcome the most challenging aspects of being married. too. If your combined income is over $160,000 a year, you won’t be able to qualify. If we face a catastrophic illness, or worse, death, we pass the hefty expense on to those remaining. , it is unlikely that you “count the costs” of the impending nuptials. Estate planning is imperative. Reach an agreement about how to share paychecks, savings, and bill payments. You can’t make your spouse promise to make lasagna every Friday night, for instance. Sign up for an account. From stock portfolios to real estate holdings, they often benefit from a host of financial resources that can provide a robust safety net for the lean times. As we age, we tend to guard our interests and assets. A marital trust is a legal entity established to pass assets to a surviving spouse or children/grandchildren. Older couples also step into a marriage with experience “paying their way.” Well versed in the costs of maintaining a household, they may not be dependent on their partner’s income when they step into the marriage. A combined income is greater than one would expect in the earlier stages in life. California Legislative Information. Marriage between two people with longer histories involves important decisions concerning finances, children, assets, housing, retirement, and more. Couples who file jointly often qualify for several tax credits, such as the Earned Income Tax Credit, the American Opportunity Tax Credit, Lifetime Learning Education Tax Credit, and the Child and Dependent Care Tax Credit. The Disadvantages of Marriage for Women Time Constraints. Marriage can result in higher taxes. The intent is to foster healthy conversation about how the two independent households will work together as one unit. Here is advice from the Financial Planning Association and the American Institute of Certified Public Accountants that you can use, preferably before walking down the aisle: , The Internal Revenue Service (IRS) advises newlyweds to ensure that the names on their tax returns match the names registered with the Social Security Administration (SSA). "Retirement Benefits," Page 7. This depends on your and your spouse’s income, but for most people it’s best to file jointly. Also, if you are a widow or a widower, you may be able to collect up to 100 percent of the deceased’s benefit. This planning is especially important when children from previous relationships are involved because it ensures they will receive what is rightfully theirs. What about insurance, medical costs, and the expense of a larger home? Companionship. Read on for a discussion of how marriage can positively, or negatively, affect your finances. For more on finances, follow NEXT Financial Group, Inc. on Facebook and LinkedIn and subscribe to this blog on the right-hand side of the page. Will we be able to support ourselves? Here’s a guide to your estimated taxes. Believe it or not, financial suspicion may creep into the psyche of individuals who are giving a late-stage marriage union a shot. Is it worth it? How do I change or correct my name on my Social Security number? This implied financial independence may serve the couple well as they begin their married life together. This website uses cookies to ensure you get the best experience. The offers that appear in this table are from partnerships from which Investopedia receives compensation. American Institute of CPAs. Given recent figures, it could take a while. Social Security Administration. Marriage vs. living together: Medical issues. Older couples often benefit from a healthier fiscal “bottom line.” The higher income means more flexibility for travel, investment, and other discretionary expenditures. Most humans are not solitary and crave companionship. If you are still not certain about the pros and cons of a late marriage, ask for help from a trusted counselor and discern whether or not the union will be a viable union of a potential catastrophe. Having a companion to consult with on a bevy of financial issues may also be a wonderful asset. "Filing Status," Page 4. AARP. This can make it a little harder to merge finances, especially when one partner is a spender and the other is more thrifty—or when one partner has considerably more resources than the other. Marriage can affect every aspect of your financial life. If we disagree with the financial approach our loved ones take with their adult children; we are positioning all parties for significant conflict. "IRS Summer Tax Tip: Advice to Newlyweds," Page 1. Social Security Administration. "New Survey Finds Money Issues Cause Frequent Tension in Majority of Millennials' Romantic Relationships." Sit down as a couple to learn more about each of your present financial situations and future goals and then talk to an attorney. Want to have a happier, healthier marriage? Marriage is an accepted way for two people to show their commitment to each other. If you and your spouse... Financial Issues. She provides inspiration, support, and empowerment in the form of motivational articles and essays. For most older couples, the most apparent advantage of marrying later in life is a combined income. The financial impact of this level is tremendous, often leading to the liquidation of one’s assets. When we are married, we pass these expenses on to our significant other. The executor's main duty is to carry out the instructions and wishes of the deceased. Abuse. Financial Planning Association. If our loved one is continuing to enrich his/her life and we are continuing to struggle, do we want to be part of a “sketchy” union? This is a boon to individuals whose spouse is a high earner or if they haven’t paid enough into Social Security.

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