How to Navigate All Marriage Documents: a Checklist
Marriage can be wonderful and romantic. But all the paperwork that comes with it? It’s not that much fun. It is difficult to keep track of all the legal things you need to do when you get married. To keep things simple, here is a list of things to take care of before and after you tie the knot.
Find out how your finances will change
When you get married, some financial matters will change, especially taxes .
Decide how you will file taxes
Decide whether to serve them together or separately. If you file together, you will combine both of your tax income. Obviously, separate registration means that you will keep them separate.
Your decision will depend on whether you are eligible for a “marriage bonus” or a “marriage fine”. A marriage bonus occurs when combining your income means you pay less taxes. A marriage penalty occurs when the pooling of income actually pushes you into a higher tax bracket, which forces you to pay more. Most couples fall into the “marriage bonus” category. But here’s a calculator to see how your situation plays out.
Same-sex marriage
For same-sex couples, tax laws may differ depending on your state. At the federal level, your taxes will be affected in the same way as spouses of the opposite sex. But if your state does not recognize your marriage, you may have to file your tax return differently at the state level. We wrote more about this here .
Decide if you want a prenuptial agreement
When you get married, you will have some financial responsibilities and others separate. It largely depends on where you live, but there are some general rules.
In most cases, you are not responsible for any debts your spouse had before you got married. Your past credit histories remain separate and you do not share your credit score after the wedding. But when you take on debt together as a married couple, both of you will be responsible for that debt. In some cases, you may also be responsible for any individual debt your spouse takes on during your marriage. We go into detail on how specific financial moves work in our full article on How to Protect Your Credit When You Get Married .
Of course, your spouse may also be entitled to your assets if you get divorced. Because of this, some couples choose a prenuptial agreement. You’ll want to get help from a lawyer, but here’s the gist of how it works: you create a document that lists your assets and existing debts, your lawyer (s) draws up an agreement, and then ask the notary to sign the agreement to keep on file.
Decide how to combine finances
Once you get an idea of how finances in marriage work, you can decide how you will combine them if you choose to do so. This is a personal decision. You will need to consider your taxes, state laws, personal preferences and find the method that works for you. We have a few tips for getting started .
Find a wedding officer
To apply for a marriage certificate, you need to sign it and mail it to the official who married you. This means that you will need to find and choose one. Many couples ask a friend to be ordained so that they can perform the ceremony for them. The Knot offers several suggestions and details on how to do this. Typically, they will find a ministry, fill out an application, possibly pay a small fee, and they will be certified.
Apply for marriage
About a month before the ceremony, apply for a marriage license at your county office and pay the fee. Your county clerk or registrar’s website must tell you where to go and what to take with you. You may need to call to make an appointment.
According to FindLaw.com, obtaining a license usually takes only a few days. Most states are about to expire. So, obviously, make sure you have a ceremony while your license is valid. See how long the limit has been in your state and how soon after getting your license you will be allowed to marry.
Once you’ve officially tied the knot, you’ll want to get a certificate. To do this, your representative will send the signed license to the appropriate county office. Again, this information can probably be found on your county’s registrar website. To get a copy of the certificate, fill out the form and pay a small fee.
Some states do require a blood test to obtain a marriage license. According to Nolo, the locations are Mississippi, Montana, New York, and the District of Columbia. Each of these areas has different rules, so see their table for details.
Same-sex marriage
For same-sex marriage, the laws are still different. You can get a marriage license in many states, but depending on where you live, your state may not recognize it. Otherwise, it will affect your government income tax and your ability to combine insurance policies and other benefits. The US marriage laws are a good resource for breaking this down by state . Click on your state, then scroll down to find their rules for same-sex marriage.
Change your name
If you decide to change your name, you will have to do it separately – and you will have to notify several different agencies. Changing it with Social Security is your top priority.
Get a new social security card
You cannot apply for a new social security card online. According to the Social Security Administration website, you need to do the following:
- Get a certified copy of your marriage certificate and birth certificate or other proof of citizenship.
- Complete and print your Social Security Card Application .
- Take the application or mail it to your local social security office .
SSA has more details here .
Get a new driver’s license
Once you have your new Social Security card, it’s time to renew your driver’s license. Bring your Social Security card, birth certificate, marriage certificate, and valid driver’s license to a DMV in your area.
You can probably find the paperwork on your state’s DMV website and fill it out prior to appointment. Just don’t sign them until you’re in front of a DMV employee. From there, you pay the fee and receive a new license with your new, married name on it.
Other documents to update
Besides the driver’s license and social security card, here are a few more documents or agencies that need to be updated with new information.
- Passport: The government offers some basic instructions here .
- Bank, credit and investment accounts : These may require you to come to the branch as they will want to see your new driver’s license. Some banks have name change forms that you can simply submit.
- Post Office : According to eHow , you can do this online via the USPS Change of Address Form.
- Utilities : update your information online or give them a call.
If you have any work benefits, such as an insurance plan or 401 (k), you also need to notify your employer or carrier. According to The Nest, they will want to see a copy of your Social Security card. And speaking of work benefits, let’s discuss how they will work now that you are married.
Combine insurance policies
Of course, you don’t have to add your spouse to your policy (or vice versa). But Investopedia explains that it is usually cheaper to add a spouse to a group health plan than it is for both of you to have separate plans. Compare prices and choose the one that suits you best. Once you’ve made your decision, check with your employer about the plan.
You can also get a better rate if you combine your car and life insurance as a married couple. Call and find out what options you have. Insurance companies will probably want a copy of the marriage certificate.
Add beneficiary and draw up a will
Of course, it’s a little depressing to think about it. But it’s important to prepare for the inevitable . It’s just a responsible act. While you are updating your bank accounts, retirement accounts, and insurance policies, ask about adding your spouse as a beneficiary. This means that in the event that something happens to you, your spouse will inherit your assets.
You will also want to create a will, power of attorney, medical power of attorney, and last will and testament. We have created a detailed guide to preparing these documents.
Of course, you do not need to list your spouse as the beneficiary in your will or in your accounts. You can always choose someone else. In any case, you must put everything in order.
Decide how to save for retirement
When you get married, your retirement accounts remain individual, according to Motley Fool . For example, if your company offers an employer-sponsored 401 (k) code, it can only be listed in your name and only you as an employer can contribute. The jack explains :
When a company offers a 401k retirement plan, it only offers this benefit to its employees. You can add money from your salary to your account, but other people cannot. Even if you are married, you cannot invest more per year. The contribution limit is the same for both married and single workers. Your wife can put money into her retirement account, but she won’t be able to split the benefits from your 401k account while you’re together.
Of course, this does not mean that you cannot save up for retirement together, even if the account is in the name of one person. You will just need to figure out how to budget accordingly.
If you both have an employer-sponsored plan, you may want to consider pooling your savings and optimizing whichever account has the best benefits. Try to take full advantage of each company’s benefits, but if you can’t afford it, try to fully invest in the best company first.
Individual retirement accounts or IRAs also cannot be held together. But each spouse can have their own IRA and contribute to each other’s IRAs. According to the IRS :
If you are filing a joint return and have taxable compensation, you and your spouse can contribute to your own individual IRAs. Your total contributions to your spouse’s IRA and IRA cannot exceed your joint taxable income or the annual contribution limit for an IRA multiplied by two, whichever is less. It doesn’t matter which spouse received the income.
Basically, you can mix and match your contribution limits and they don’t care whose salary they come from. So if your spouse is not working and you are working, you can contribute to his or her account even if you have reached your own IRA contribution limit.
Another thing to consider is your asset allocation. Depending on how you decide to save for retirement, you should diversify your assets accordingly. The American Association of Individual Investors recommends:
The first step is to develop an asset allocation strategy for your cumulative savings, taking into account all the risks you face, including long-term risks such as loss of purchasing power and significant risks of over-concentration in one sector, industry. or in stock. Once you have worked out an asset allocation strategy together, you should allocate your retirement asset investments to take full advantage of the choices in the best plan.
One spouse’s plan may have better stock options than the other. In this case, you may want to consider using this plan for investing in stocks and another one for investing in bonds. Basically, you want to decide how you will allocate your assets together and then choose the best options for each asset type.
It looks like there is a large, legitimate to-do list to do with marriage. Most of us just get it on the go. But knowing what to expect in advance can make the whole process a little easier.