How Does Tying the Knot Affect Your Taxes?

If you’re about to get married, then your thoughts are probably consumed with wedding bells and honeymoon plans, but, while it might not be romantic, pre-wedding time is also a time during which you need to be thinking about your finances, and,more specifically, your taxes. Getting married

comes with a number of financial implications; thus, before you tie the knot, there are some things that you should be aware of and that you should talk over with your partner and soon to be spouse.

How Will You File?

One of the first financial decisions that you will have to make as a married couple is whether you want to file separately or jointly. Each option can be good, but each option can also not be the best choice. It really all depends on your situation and how your chosen filing status, based primarily on the amount of your combined incomes, will affect your taxes.

Most of the time, it is more beneficial to file jointly, but this is certainly not always the case, For that reason, it is always wise when you get married, or, for that matter, go through any major life change, to seek the help and expert advice of a qualified financial professional.

Should You Take Advantage of the Unlimited Marital Deduction?

Another thing you will want to think about, as a couple, is whether or not you should take advantage of the unlimited marital tax deduction. This isn’t the most “cheery” topic to think about since it deals with what would happen to assets in the event of the death of a spouse.

However, those who do have this benefit are able to have assets transferred to the surviving spouse, so, while the topic may not be nice to think about, the benefit is definitely worth educating yourself on just in case. A financial adviser can provide you with more information about this benefit and how you might go about receiving it.

These are really just two of many things you should consider as a soon-to-be-married person. Remember, as you go through this joyous life change, don’t forget to think about finances and to seek the help and advice of a financial professional!