Marriage should always be about being in love with your partner and not about what you will gain financially, but when two people fall in love and get married, there will be certain financial benefits for both of you. Combining two incomes can certainly make a difference, but the benefits go even further. Here’s a list of a few of the most common benefits you may experience with your money, when you tie the knot.
Five Important Money Benefits of Marriage
1. Combined Income
The most obvious benefit is the combining of both partner’s incomes. However, it’s never a good idea to count on both salaries within your budget. Many financial advisors recommend basing your living expenses on the husband’s income and saving the wife’s income. This is strictly due to the fact that when you have children, the wife will miss some time at work.
2. Less Expenses
If you currently pay two separate rent payments, two separate electric bills, two separate water bills and so on, you won’t need to worry about this anymore. Combining your lives means only one rent payment and only one bill per utility you use. This can save couples a large amount of money every month, but will start to even out as they have children and need a larger place to live.
3. Lower Insurance Rates
Combining car insurance will help you save money immediately. It’s more expensive to pay for two insurance policies instead of just one with both drivers on it. When you get married, it’s a good time to shop around and look for an insurance company willing to offer you the best rate for the right coverage, such as 21st Insurance. Make sure to compare a few quotes before choosing the right one for your needs.
Health insurance will also be lower because you will on the same plan. If you get your coverage through an employer, you will also notice your spousal insurance is not taxed, unlike if you put your partner on your policy without getting married first. A single family plan is almost always cheaper than paying for two policies and this can save you a large amount of money.
4. Non-Taxable Gifts
Something you may not have thought about, but a very important tax benefit to keep in mind, in most cases, spouses are exempt from paying taxes on gifts, even at a high limit. This can help if you need to “gift” something to your spouse.
5. Collective Property Benefits
It’s easier to co-own a home, account or any other type of property when you’re married compared to unmarried partners. Married couples will find it easier to get a loan due to a combined credit score and they will find other benefits with owning property together. Not to mention, if the marriage doesn’t work out, it’s much easier to divide the assets equally with both names attached.
Marriage comes with many benefits and these are just a few of the financial benefits of joining two people together. You will also experience tax benefits ranging from income taxes to estate taxes, along with many other benefits. It’s always a good idea to seek the help of a professional when getting married, so that your financial house remains in order and doesn’t cause unnecessary fights.