Wedding bells are ringing in your future soon and your head is spinning. The flowers, wedding singer, the cake, the dress—the list of things you need to do is endless! You also have another list of things to do after your honeymoon like getting joint bank accounts, moving into a larger place, and updating your driver’s license. One more list that you may not be aware of is a list of financial perks you get when you tie the knot.
Getting Married Activates Savings and More
Other than the cash you get from returning the 3 new toasters from your family members that didn’t look at your registry, there are some major financial benefits to getting married.
- Lower car insurance: Most insurance companies give discounts for multi-car policies when both drivers have good driving records. However, this is probably not a good idea if one of you has a lot of tickets or wrecks.
- Tax time: The current tax codes favor married couples in several ways. The combined deductions may give them the ability to itemize. Also, filing jointly means you only pay one tax professional to prepare your taxes. The downside is that high-earning couples may actually have to pay more in taxes.
- Joint Income: One of the largest benefits of marriage is the financial protection found under joint income. If one person has a rough spot financially due to medical bills or car repairs, the couple may be able to overcome the problem together. Joint income also means you can normally get better rates on car and home loans.
- Credit Scores: Combined credit scores can cover a multitude of individual issues. If your partner has a better score than you, then you will get an instant jump in your score. Unfortunately this goes both ways, so the person with the higher score may see a dip.
- Social Security Perks: It is probably a little early to be thinking about this, but most married couples qualify for extra SS benefits. You could have the option to claim spousal benefits which would give you up to 50% of your spouse’s entitlement. Your claim will have no impact on how much your spouse receives when they retire.
- Health Insurance: Getting married is the perfect time to shop around at your options for health insurance. Depending on your employer’s policies, you may be able to drop your current policy and hop on your spouse, or vice versa. Alternatively, marriage is considered a Qualifying Event on the ACA Marketplace as well. You activate a special enrollment period on the marketplace where you can change or add private insurance. Be careful to check if your subsidies will change. You may be required to repay part of your subsidy since you will have a change in income.
As you plan to spend the rest of your life with your loved one, keep an eye out for these potential savings and perks. They may even help you save enough for that second honeymoon!
If your company is looking for benefit education, financial literacy, or help navigating ACA regulations, call a benefits consultant today.