According to the figures from the National Center for Health Statistics, each year almost two million people get married in the US. There are many financial advantages being married. However, having been personally been both at one time, I feel that there are just as many financial advantages of being single. Let’s looks at the benefits of being married first.
Getting married can turn out to be a financial windfall. After getting married, many saw a sharp increase in their level of wealth. It’s cheaper for two people living together than live apart. Getting married also allows you to have risks, financially. An example would be if you lose your job but your wife is working, it is easier to cope financially than being single. Plus getting married can help with state, and federal estate taxes. There are two other big benefits in getting married; one is Social Security, the lower earing spouse can claim spousal benefits based on the other spouses earnings record. The second is Individual Retirement Accounts (IRAs), if your husband inherits your IRA he can treat it like his own. Unlike if he inherited someone else’s IRA, he would have to withdrawal within one year of that persons death.
Now the downside can be if a married couple makes over $169,000 combined, they may pay more in taxes than if single. Also there is a marriage penalty at lower incomes. Being married also can reduce the eligibility for Medicaid and the earned income tax credit or tax credit that can help pay for health insurance under Obamacare.
When you are single you have control over the budget. The debt you have is also your own, which can be a good thing. It’s rough when your spouse has bad credit; causes then you also have bad credit. You have no one to go over who spent what and why. You can custom your budget to work for you. The other advantage is investing at your own pace. You can get your feet wet by trying new investments without having to discuss it with your spouse. Also, since you are the only adult in the home your expenses with be lower. You will pay less in utilities and less on food for example. It’s also important that you make yourself financially strong before getting into any serious relationship. These same advantages are not all that true to divorced singles seem to be far worse off than just staying married or not marrying at all.
I don’t recommend being married or being single just for financial advantages. Depending on your situation you might as well look on the bright side of things. It is impossible to say that married people are always financially better off than single people or vice versa. It is possible, however, to examine the financial pluses and minuses of marriage and figure out how they may affect you, now or in the future.