Are you thinking about altering your marital status? Learn about the tax, inheritance planning, and other legal ramifications of your married status.
What you will discover:
What changes when you marry?
Tax benefits of marriage
Marriage has financial advantages.
Marriage has health and medical advantages.
Eligibility for Financial Aid
Marriage has government aid perks.
The advantages of marriage in estate planning
In our everyday social lives, we understand what it means to be single, married, widowed, divorced, or in a domestic relationship. But what about the legal ramifications of your existing married status? These categories represent much more than a romantic connection to a spouse or life partner.
Although it is not glamorous or romantic, marital status is a practical matter — and it is a legal status governed by the government. To get married, for example, you must obtain a license, your ceremony officiant must generally be licensed to perform the ceremony, and your local courthouse sends you your final marriage certificate, which serves as legal proof of your marriage and proof of your new legal status. Divorce is also a legal procedure and is approved by the court. In certain places, domestic partnerships are recognized by the government too, and partners may be entitled for many of the same state rights and duties as married couples (although not at the federal level).
Table of Contents
What changes when you marry?
So, what happens from a legal standpoint when you marry?There is a lot more to it than you may think. Your marital status creates unique financial, healthcare, tax, and other shared opportunities and responsibilities. Here are some of the significant effects that a change in marital status might have on your life. (and the lives of your family members).
Marriage has tax advantages.
When you marry, you have the option of filing jointly or married individually. With a new spouse, your income is likely to rise, perhaps putting you in a new tax category. If you file taxes after marriage, you may receive a better bargain as a married couple than if you were both single. When a marriage ends due to divorce or death, you must file as an individual again, with the same risk that your tax obligation will change. Find out how your marital status impacts your taxes.
Marriage has financial advantages.
Your credit score is not directly related to your marital status, however any change in your legal name would be shown on your credit report. However, if you take out credit jointly with your new husband, it will show on both of your credit reports. If the marriage subsequently ends due of divorce, this debt isn’t wiped off – you got into the obligation as an individual too. Learn more about the impact of marital status on credit card and loan applications.
Marriage has health and medical advantages.
When your legal status is “married,” you are eligible for coverage via your spouse’s employer-sponsored health care plan. As his or her next of kin, you also have the right to see your spouse in the hospital. When a marriage ends, these benefits end as well, so it is critical to find another method of health care as well as create a Hospital Visitation Authorization so that your unmarried partner or another trusted friend can visit you in the hospital. More information on how your marital status impacts your health insurance and hospital visiting privileges may be found here.
Eligibility for Financial Aid
Anything that affects how your income is assessed can affect your eligibility for student loans and grants if you are a college student. When you marry, your household income increases because your spouse’s income is included. However, you may be able to register as independent, and your parent’s income won’t be recorded, which frequently implies higher financial help for the student who can file as independent. Learn more about how your marital status impacts your eligibility for student assistance.
Marriage has government aid perks.
When determining eligibility for government programs such as Medicaid, food stamps, welfare, Temporary Assistance for Needy Families (TANF), or HUD subsidized housing, your household or family income is used. You may qualify for these programs when your income falls below their poverty line criterion. Getting married or the breakdown of a marriage is likely to alter your eligibility. If you marry someone with a greater salary, for example, you may lose access to these programs. However, if you become single after being married to someone with a higher income, you may be eligible again. Learn more about how marital status impacts government aid eligibility.
The advantages of marriage in estate planning
Your estate plan should be modified anytime your marital status changes. When it comes to estate planning, spouses have additional rights since they are generally the major heir, even if there is no Last Will and Testament. Even in the lack of a Power of Attorney, they may make some essential choices. Married couples also have access to specialized estate planning trusts, such as the QTIP trust. It is also tax-free to leave assets and gifts to your spouse. If you are divorcing or have lost a spouse, you will need to revise your estate plan to account for the change. Learn more about the impact of marital status on estate planning.
