More so than many other decisions individuals make throughout their lives, getting married has a significant and lasting impact. Because the decision to get married is such an important one, it is critical that newlyweds consider all of the relevant factors. In addition to planning for the wedding, there are several legal and long-term considerations couples should make before or soon after tying the knot.
What steps need to be taken in order to change my name after marriage?
Although women traditionally take on the name of their husbands, there is nothing that prevents men from taking the woman’s last name. Also, it is not entirely uncommon for spouses to hyphenate their last names. Regardless of what newlyweds decide about changing names, certain steps that must be taken:
• When ordering marriage certificates, request extras to have on hand for the various agencies which may request them.
• Visit the Motor Vehicle Department for a new driver’s license and to change the name on vehicle registration.
• Have the name changed on bills such as utilities.
• Order a new Social Security card by calling (800) 772-1213.
• Contact the passport agency to have the name change reflected on passports.
• Contact places of employment and request that the new name be reflected on all records and paychecks.
• Look over personal belongings such as checks and business cards for improper identification and order replacements.
Is it better for newlyweds to rent or purchase a home?
As a general rule of thumb, it makes more sense to own a home rather than rent if possible. On the other hand, if purchasing a home creates an undue financial hardship, renting might provide the better option. Because it is wise for newlyweds to establish a pattern of making sound financial decisions early on, they should carefully consider whether purchasing a home is really the best move. The following are some suggestions for newlyweds to consider when determining whether to rent or purchase a home:
1. Purchasing a home
a. Advantages: Tax advantages; Potential to build equity; Personal satisfaction.
b. Disadvantages: Maintenance costs; Property tax; Less flexibility to move.
2. Renting a home
a. Advantages: More flexibility to move; Can be cheaper; No maintenance costs.
b. Disadvantages: No potential to build equity; Potential for annual rent increase.
In addition to these factors, newlyweds need to examine their long-term goals when deciding whether to rent or purchase a home. Generally speaking, homeowners should remain in a home for at least two years in order to reap maximum tax benefits. As such, newlyweds should be willing to remain in one location for an agreed upon period of time before purchasing a home. Also, if newlyweds foresee a significant increase in income on the horizon, it may be wise for them to wait until they have the finances to make a more satisfying purchase.
No matter what your choice, make sure you take a close look at the community you are choosing to live in. Do the people there take care of the property? Does the neighborhood appeal to your lifestyle? What types of things do you enjoy doing together as a couple and does this residence help make it easier for you to enjoy life? It’s also important to educate yourself on Homeowners Associations and the impact they have on your residential choice.
Will my tax status change after marriage?
Individuals who are married by December 31 can choose to file as either married filing jointly or married filing separately for the entire year. Most couples opt to file as married filing jointly because it provides the greatest tax credits and advantages. In certain instances, however, it might be beneficial for spouses to file as married filing separately. Because of the tax code’s various intricacies, it is always wise for newlyweds to consult with a professional when filing taxes together for the first time.
What insurance considerations must I make after marriage?
Insurance is usually not the first thing a couple thinks of when planning to be married, but it is nevertheless something that should be considered. This is largely because many types of coverage become particularly relevant upon marriage. Moreover, even insurance polices that existed prior to marriage may require some adjustments afterwards. In addition to making the standard name changes on insurance forms, newlyweds should consider taking the following actions:
• Determine whether merging health insurance policies will lower the monthly rate.
• Look into purchasing pre-natal coverage.
• Consider purchasing additional life insurance.
• Change limits on homeowners or renters insurance to cover the value of the new spouse’s possessions.
• Add spouse to existing policies and cancel policies which can be merged.
If you have questions or if you are wondering if a insurance product is worth it to you and your family, speak to an attorney familiar with insurance policies and disputes. They will be able to help you pick the product that is right for you as well as work as your advocate if disputes with your insurance come up in the future.
Are there any programs available to assist newlyweds expecting a baby?
The Family and Medical Leave Act (FMLA), provides eligible employees with 12 weeks of leave for certain medical reasons during a 12-month period. Pregnancy is one such reason, and in certain instances where there are pregnancy complications both the mother and father can avail themselves to a leave of absence under the FMLA.
Although the FMLA has proven very beneficial to countless couples, there are a few things to keep in mind:
• The Act does not guarantee paid time off.
• Time taken off for pregnancies under the Act can run concurrently with maternity leave.
• If a mother must take time off prior to childbirth because of complications, this time will count against the 12 weeks.
• A husband can take time off under the Act to care for a spouse suffering from pregnancy complications.
What steps can I take to secure my financial future with my new spouse?
All too many couples neglect to examine their finances and spending habits prior to entering a marriage and sadly, financial reasons are one of the most commonly reported causes for divorce. As such, newlyweds should sit down with one another and openly discuss their financial goals. Some suggested discussion points are:
• Decide upon a budget: Look at all necessary and voluntary expenses and create a plan which fulfills needs and wants, and allows some money to be set aside for savings. The budget should be agreed upon and abided by.
• Establish a back up plan: Life is full of surprises and it makes a lot of sense to be prepared for the unexpected. Newlyweds should try to set aside at least three months worth of spending money in case of an emergency.
• Discuss financial history: Spouses should be open with one another about their spending habits to avoid surprises. Simply being honest with one another will prevent needless contention.
• Create long-term financial goals: Spouses should decide where they want to be financially and work together to meet those goals.
