by Ruckertax | May 9, 2014 | Marriage |
What are the financial implications of marriage (and of divorce and re-marriage)? Those who have recently changed their marital status or who are planning such a change may have important financial and legal decisions to make. These decisions might deal with property ownership, providing for children’s welfare, post-mortem planning, and day-to-day finances. TABLE OF CONTENTS How To Prepare Financially For A First Marriage How To Prepare Financially For A Divorce How To Prepare Financially For Re-Marriage Government and Non-Profit Agencies This Financial Guide discusses financial considerations related to a change in marital status. And, because divorce is sometimes the flip side of a marriage–and often the bridge between marriage and remarriage–it is covered here as well. This guide will also briefly touch on legal issues involved; however, variations in state law make it nearly impossible to discuss in any detail the legal ramifications that a change in marital status presents. Related Guide: For a discussion of the impact of the death of a spouse, please see the Financial Guide: DEATH OF A SPOUSE: Financial Steps You Should Take HOW TO PREPARE FINANCIALLY FOR A FIRST MARRIAGE For the young, newly married couple, areas of financial concern primarily include: (1) life insurance, (2) form of property ownership, and (3) money management. LIFE INSURANCE When it comes to insurance needs, the basic rule is that you need enough coverage to sustain your family’s present income level should you die. If you are the only breadwinner, or if you plan on starting a family soon, then you should purchase life insurance. Related Guide: Please see the Financial Guide: LIFE INSURANCE: How Much And What Kind To...
by Ruckertax | May 9, 2014 | Frequently Asked Questions, Marriage |
TABLE OF CONTENTS Legal Rights: What are the major differences between married and unmarried couples? What estate and financial planning steps are particularly important for unmarried couples? Do married couples need life insurance? If you change your name after marriage, who should be notified? Do I need to update my will when I get married? What are the tax implications of marriage? How can married couples hold property? LEGAL RIGHTS: WHAT ARE THE MAJOR DIFFERENCES BETWEEN MARRIED AND UNMARRIED COUPLES? When it comes to legal rights and being married vs. unmarried, there are several major issues to consider. Specifically, unmarried couples do not: Automatically inherit each others’ property. Married couples who do not have a will have their state intestacy laws to back them up; the surviving spouse will inherit at least a fraction of the deceased spouse’s property under the law. Have the right to speak for each other in a medical crisis. If your life partner loses consciousness or capacity, someone will have to make the decision whether to go ahead with a medical procedure. That person should be you. But unless you have taken care of some legal paperwork, you may not have the right to do so. Have the right to manage each others’ finances in a crisis. A husband and wife who have jointly owned assets will generally be affected less by this problem than an unmarried couple. WHAT ESTATE AND FINANCIAL PLANNING STEPS ARE PARTICULARLY IMPORTANT FOR UNMARRIED COUPLES? The following steps are particularly important for couples who are not married: Prepare a will. If both partners make out wills, the chances are that...
