LGBT rights have come a long way in recent years. If you are thinking of marrying your same-sex spouse in California, you have a lot to think about in terms of your wedding. Do you know what special considerations the two of you need to discuss for the financial future of your marriage?
Fidelity offers a few questions for you and your soon-to-be-spouse to work together to answer. Do what you can to start the next chapter of your shared lives together on the right foot.
Impact on taxes
Marriage can have a sizeable impact on both spouses’ taxes. For same-sex couples, it could be best to file jointly, as it makes filing easier and can reduce the overall cost of preparing taxes. That said, filing jointly may not be the best move if both spouses earn the same (or nearly the same) income.
Workplace and government benefits
Marriage impacts everything from health insurance and Social Security benefits to workplace savings plans and health savings accounts. If one spouse in a same-sex marriage is a member of the military, the other spouse can benefit greatly from military benefits, mainly because there are so many. The military covers housing, health care, pension and more.
With estate planning, it is vital same-sex couples consider health care proxies, living wills and documents related to the disposition of wills. This is because unless same-sex couples legally marry, they do not receive the “next-of-kin” status. What that means is that should one spouse be admitted to the hospital for an emergency, the other spouse may not be allowed to see her or him.
This information is only intended to educate and should not be interpreted as legal advice.