Same-Sex Marriage and Finances

MONEY MATTERS

BY GARY TANNER

Finances can always bring diffi cult decisions, and that is no diff erent with same-sex couples. It can be tricky, and you want to make sure that you’ve paved the right path to retirement and sound fi nancial health for your future.

There is plenty of room for education about the legal implications of marriage, and topics such as taxes, health insurance, retirement benefi ts, inheritance, and more. Marriage brings federal legal rights, and as you might guess, many of those impact the couple’s fi nancial situation.

Tax strategies are one crucial area where a new marriage can aff ect your fi nances. Does one spouse earn signifi cantly more than the other? If that is the case, your combined tax bill might be less. Both high earners? You may pay more after you take your vows due to the loss of deductions.

One of the essential federal legal rights gained after marriage is access to one another’s Social Security benefi ts. Check out the Social Security Administration’s online tools to estimate how much these benefi ts might be worth to you and your spouse.

Healthcare costs are on everyone’s minds these days — gay or straight. Most health plans limit spousal coverage precisely as the name states: you’re only covered if you are the participant’s legal spouse. With the ability to legally marry, same-sex couples can now take advantage of the ability to cover their partners on their health insurance policies and to choose which employer off ers the best value for families.

Retirement plans are another area where spousal status matters. Some private employer plans and federal government retirement plans have already changed their provisions to recognize same-sex marriages due to earlier regulations and decisions. If you’re in a same-sex marriage and aren’t sure whether your retirement plan legally recognizes your spouse, talk to your human resources representative and ensure that your rights are recognized.

All couples (gay or straight) deserve to have fi nancial security. Same-sex couples do face unique challenges in this area and, as noted, deal with a higher level of economic insecurity than that in the general population. Fortunately, with education and a game plan, it is possible to increase your confi dence in the steps you’ve taken toward fi nancial security.

Show your partner how much you love him or her by scheduling a “business date.” Have a nice dinner and talk through areas in your fi nancial lives that could use some attention.

GARY TANNER has a strong background in Information Technology and Property & Casualty Insurance. He resides in beautiful Mount Dora, Florida, with his partner of 30+ years and is an active member of the community and surrounding areas. Gary owns a successful insurance agency in Lake County and contributes each year to the local school system. He has written technology and lifestyle articles for online publications and writes blogs related to the insurance industry and local food scene.