Decisions To Make Once You’re Married
Marriage is an exciting time in life. You and your partner are coming together as two single people and joining to create a future filled with your hopes and dreams. Whether you’ve planned and had a huge event with hundreds of guests, or a romantic moment between just you and a couple of witnesses, once that moment has passed, life begins anew. As a married couple, you have some things to consider and decisions to make. Some, like changing your name on documents, are required, and others may seem optional but can enhance your life in ways you may not think of. Here are some of those things.
Life Insurance
If you’ve never had a life insurance policy, it’s time to consider purchasing one once you are married. You want to ensure each of you is covered in the event the other dies. This is especially important if you have or plan to have children or a home. You’ll need enough coverage to replace one income projected out until retirement. Major policy types are term life, whole life, and participating whole life insurance. A good insurance agent will help you decide what is best for your new situation. Update beneficiaries on any existing policies.
Health Insurance
Health insurance can get complicated. Purchase options depend on your age and residential location. If you were under the age of 65 and over the age of 26 and not on your parents’ policy, you were purchasing a single coverage health policy. Your choices in policy type and coverage options were dependent on the policies offering by your provider, either an employer, or a private policy, or from the federal or state exchange. As a single person, you selected the best policy for your individual needs. Once married, you need to purchase a policy for both you and your spouse. You need to choose a family policy or a self + one, if available. The policy that worked for you before marriage may not work well for your spouse. You’ll need to consider the health needs of your partner. This is where speaking to a trusted insurance provider will help.
Home Purchase
Once you’re married, consider purchasing a home. There are many benefits to homeownership. Homes are expensive, and with two incomes, the cost-sharing becomes more manageable. The two of you can work together to improve the property and build some equity over time. You’ll become a part of the community, and if you have children, they will benefit from the stability.
Payroll Information
Contact your payroll office and change the withholding to keep your tax withholding in line with your new situation. Your withholding is the rate held from your paycheck to cover the federal, state, and local taxes. If you don’t withhold enough, you’ll have to pay additional taxes during year-end annual filing. Use the calculators on the IRS website to help you estimate what your new withholding should be. You will need to consider both incomes and the number of dependents. If you both work, you and your spouse should analyze to see if changes to withholding are needed.
Bank Accounts
Depending on your situation, you may already have bank accounts that you intend to keep separate. If so, you may need only to change your name, which requires a certified copy of the marriage certificate. In that case, you may want to designate your spouse as a Payable on Death (POD). If you plan to combine your financial accounts, you will need to establish a joint account. Discuss options with your banker or financial advisor.
Estate Planning
You may need to create a Will, Health Directive, and Power of Attorney – or change an existing one. Everyone should have these things, single and married, but a Will is especially important if you have children from a prior marriage. You will want to ensure they are protected.
Whether single or married, you will need to handle insurance, taxes, and other legal paperwork throughout life. Once you’re married, when making these decisions, you need to consider your spouse’s needs.
