Getting married is one of the major decisions an individual has to make. Marriage is a lifelong commitment. Of course, it means settling down with the person you love, but it also brings major changes in various areas of your life, especially in the financial aspect.
Marriage is a partnership, and with careful planning and constant communication you can map out your goals and priorities as a couple. This way you both can maximize the financial benefits of being married and ensure that you attain financial success as a family.
Since you are now partners, your income and expenses are now combined, therefore you have increased income. Sharing expenses is the best means to secure your finances. With this, you can prioritize the more important purchases and focus on these rather than the less-important expenses. Careful discussion regarding a spending plan is necessary in order to ensure that a sufficient percentage of both your incomes goes to savings.
In determining where to put your savings, you have an option to have a joint account or an individual account. A joint account can help you keep track of your expenditures and will lessen fees. However, other couples value their independence and would prefer separate individual accounts over the joint account. Whatever you choose, keep in mind that you gain more if you put your eggs in one basket, two incomes are better than one.
When you are married, both your incomes are combined as one. This will give you an advantage in terms of filing for income taxes. Filing your taxes jointly can give you an edge in terms of tax refunds and credits.
In securing your own house or other loans, your combined income enables you to easily acquire a credit line. Most financial institutions consider the marital status of their applicants. Married couples are viewed positively in terms of support when it comes to debt servicing, knowing that the other partner can hold up when it is needed. Another benefit of being married and having double income is in obtaining a bigger loan amount, which can give you flexibility in choosing the perfect house for your family. As discussed earlier, you can gain more tax benefits if you prefer joint ownership as against individual.
The government has been promoting benefits for married couples, such as social security benefits. If you are married, you have access to your partner's pension, medical and disability benefits. This is designed to help a partner bounce back on her feet in case something happens to the other.
Marriage is a merging of two lives. One is responsible for the other and vice versa. If the time comes that a partner cannot continue working, the other partner can assume the responsibility. That is the flexibility of marriage as a partnership. Demonstrating the commitment of both partners to fulfill a lifelong commitment to build a family, is one of the biggest financial benefits of being married. The commitment gives a person the motivation to keep their loved ones financially secured.