Love and Money: Is Marriage Worth It for Midlife Couples?

Are you and your significant other in the middle years of life, contemplating taking the plunge into marriage? If so, you’re not alone! Many mature couples are asking, "Does it make financial sense to tie the knot?"

Let’s break it down for you with the good, the bad, and everything in between.

"Spoiler alert: it’s not just about love—it's also about your wallet," responded one of my successful male clients, to whom I had posed the question.

Why Get Hitched? The Financial Perks of Marriage 💰

1. Tax Break Bonanza!

Did you know that married couples can unlock tons of tax breaks? If your combined income isn’t sky-high, you might pay less in taxes as a married couple. But beware—if you’re nearing the upper-income bracket, marriage could lead to a tax hike. Yikes!

2. Help Your Kid’s College Dreams

Thinking about your children’s future? Getting married can increase your household size, which might help your child qualify for more financial aid. If your new marriage boosts your household income slightly, it could be a game-changer for college funding!

3. Estate Benefits: The Good and The Complicated

Marriage can positively affect your estate plans—especially regarding inheritance. Some states entitle your spouse to a portion of your estate, regardless of what your will states. Make sure you know the rules in your state!

The Flip Side: Financial Pitfalls of Marriage ⚠️

1. Social Security Surprises

Are you dependent on your ex's social security benefits? Think twice before saying “I do” again! Remarrying can jeopardize those benefits–especially for divorced spouses or widows/widowers under 60.

2. Alimony Anxieties

If you or your partner receive alimony, getting remarried could stop those payments. However, this is usually a hard stop unless specific arrangements are made.

3. Impact on Pension and Annuity Benefits

Married life can affect pensions, especially for retirees like police officers or firefighters. If you’re drawing on these benefits, remarrying might jeopardize them.

4. Financial Aid for Kids: It Could Change 🙁

Thinking about your child's college funding? Don’t forget that your new spouse’s income will affect financial aid calculations. Keep an eye on that!

5. Healthcare Costs: The Heavy Burden

Caring for a spouse means you’re also on the hook for their medical bills. Long-term care costs can drain your savings, potentially impacting what you planned to leave to your kids.

The Bottom Line: Love Isn’t All You Need ❤️

Marriage brings a unique set of financial circumstances that can profoundly affect your life together—especially when you’re older. It’s crucial to weigh the pros and cons critically, considering your unique situation.

🔍 Pro Tip: Engaging a tax expert is a no-brainer. And if either of you has been through a past divorce, an attorney’s insights can be invaluable. Love is a big part of the equation, but so is making a wise financial decision!

Remember, whether you choose to tie the knot or continue cohabitating, the decision should fit both your heart and your finances. Do your research, get professional advice, and prepare for an exciting future—whatever path you choose!

📝 Let’s Talk! Have you navigated the marriage vs. cohabitation decision? DM me your story using fewer than 25 words. I bet it's not unique!