Introduction
Marriage is the name given to the official union of one man and one woman. The legal definition of marriage may be simple, but its benefits go well beyond what is required by the text of the law. Beyond the simple material benefits of love and companionship or the financial advantages of tax deductions and IRA benefits, a marriage has good consequences on a person’s life.
The perks of parent benefits, health insurance, and help with estate planning are just a few ways marriage can improve your life. The numerous areas of a person’s life that marriage may enhance are covered in this article.
Definition of Marriage
According to the official dictionary, marriage is “the legally or formally recognized union of two people as partners in a personal relationship.”
The Benefits of Marriage
Apart from using your partners’ credit cards, you have many benefits when marrying your significant other. Marriage provides many benefits, including tax, military, and medical care. In addition, having a marital status often results in reduced tax penalties and the ability to claim an income tax credit.
Additionally, eligible couples who file joint returns often benefit from lower income ratios and higher income thresholds. The government now recognizes same-sex spouses and common-law marriages, allowing same-sex couples to receive the same benefits as opposite-sex couples.
On the other hand, domestic partnerships and unmarried couples do not receive the same perks of marriage and may not be eligible for specific federal programs. Military benefits, such as dental coverage, are also available to spouses of active duty service members.
Regarding medical care, family rates may apply to married couples, while separate returns may be required for unmarried couples. In addition, upon the death of a spouse, the entire estate can pass to the surviving spouse without the need for probate court. Finally, the legal recognition of a marriage can also bring benefits, such as the ability to obtain a credit card in the name of both spouses and the right to make medical decisions for one another.
The benefits of marriage are not limited to tax and financial considerations but also extend to the emotional and social support that comes with a lifelong commitment to another person.
Emotional Benefits
The emotional benefits of marriage are widespread. And apart from legal benefits, marriage can positively impact your life’s quality score. In the following paragraph, we’ll explain why that is the case.
Love and Companionship
It might seem like a no-brainer, but getting married to the person you feel the most profound connection with is one of the most effective methods to maintain that closeness. In addition, you will have a partner for the rest of your life with whom you can enjoy beautiful adventures. Numerous studies have found that married people are more likely to describe themselves as happy, contented, and content with their lives than single people who divorced or lost a spouse.
Increase in Life Satisfaction
Compared to unmarried contemporaries, those who are married report higher levels of general life satisfaction, as was the finding of a study in the Journal of Marriage and Family. Research has shown that married individuals are likelier to report feelings of happiness, contentment, and fulfillment than individuals who are either single, divorced, or have experienced the loss of a spouse.
Financial Benefits
Tax Benefits
Marrying the love of your life is not something you’ll likely do for financial benefits unless you live in Germany. In Germany, you’ll get massive tax advantages for simply getting married, so there they often call marriage economic partnerships. So before moving to Germany, we suggest you stay tuned to read more about the standard tax advantages of marriage.
Tax Deduction
Legal marriage allows you to get an unrestricted marital tax deduction, which is the most substantial tax benefit a married couple may receive because you can transfer assets between the two of you freely, including giving your spouse any estate assets exempt from gift or estate taxes. The IRS defines a gift tax as a fee assessed on a property transfer from one person to another when the recipient receives nothing or only a portion of the original value in return.
Filing Tax Returns Jointly
By filing a joint return, married couples can reduce their taxable income compared to filing separately. According to Jane Smith, Certified Public Accountant and Tax Specialist, the joint tax return considers spouses’ income and expenses. Combining expenses allows for optimizing deductions and credits, such as the mortgage interest deduction and child tax credit. However, in some cases, you may or may not benefit from getting married and filing jointly with your spouse. “You can wind up paying more in taxes with two high earners,” cautions Susan M. Moss. On the other hand, for eligible couples, the taxable income might decrease significantly.
Social Security benefits
According to Mark Johnson, Financial Advisor, and Social Security Specialist, marriage can positively impact a couple’s Social Security benefits. Still, it’s a complex system, and the optimal strategy will depend on each spouse’s personal earnings history and age when claiming benefits.
Social Security benefits for an eligible couple may increase after marriage, but several variables must be considered. According to claim specialists, the pair may be eligible to obtain a more considerable total benefit if both claim spousal benefits if one spouse has made more money. Not the most likable scenario, but if one spouse passes away, the surviving spouse can be qualified for a survivor benefit equal to the benefit sum of the dead spouse.
Prenuptial Agreement Benefits
The assumption made by the law is that when two individuals get married, they create a partnership in which they equally share the union’s obligations and assets. In a divorce, this is referred to as the “presumption of equal division.” According to Alyssa A, an expert in family law, any assets acquired during the marriage will be divided equally between the two partners, regardless of whose name is on the title. Bank accounts, real estate, pensions, and income fall within this category. The purpose of this law is to guarantee that both parties to a divorce are treated equally and fairly.
IRA Benefits
An IRA, also known as an individual retirement account, can be used in various ways during a marriage. For example, eligible couples can roll over a deceased spouse’s IRA, or you can fund the IRA of your spouse. This allows for the breadwinner in the family to contribute to the unemployed spouse’s retirement account. Filing a combined tax return is mandatory if you want to use this benefit.
Money from Inheritance
Whether or not the recipient of the inheritance is married affects how the money is taxed. In most cases, the tax treatment of inheritance money is the same as that of a single person’s ordinary income. However, the inheritance tax implications for eligible couples can vary depending on whether the legacy goes to one spouse or both.
Advantages of Health Insurance
One of the benefits to marriage is that your medical expenses may just be lower if you’re married. To elaborate, health care can become cheaper as opposed to unmarried persons. This benefit is relatively simple, but when married, you’re eligible for health insurance benefits in the form of a family discount. If you’re married, health care insurance under the current policy can be beneficial if one spouse becomes unemployed and is not insured through an employer.
Paternity Benefits
According to Jane Smith, Human Resources Specialist, marriage provides fathers with access to a range of benefits they might not otherwise be entitled to, such as parental leave, health insurance, and other benefits available to the family. However, it’s important to note whether you’re eligible for any of the above depends on the local jurisdiction. Eligible couples, however, will receive numerous paternity benefits.
Estate planning advantages
We’ll go a bit deeper into the previously touched subject of ‘money from an inheritance.’ Whether or not the person receiving the money is married impacts how the money is taxed. In most cases, inheritance money is taxed similarly to regular income for a single person. However, depending on whether the gift is left to one or both spouses, an inheritance can have different tax consequences for a married couple.
To elaborate, if only one partner receives the inheritance, it is treated as separate property that cannot be divided in a divorce. Unless the assets are placed in a trust or another way to avoid taxes, the spouse who receives them must pay taxes.
If both spouses receive the gift, it may be considered joint property that must be divided when the couple divorces. In this case, depending on how much property each spouse has, both spouses may have to pay inheritance taxes. Especially for your retirement plans, marrying seems like a good way to reduce income taxes, and limit the amount you pay in retirement.
Health Benefits
Longer life expectancy
According to a study published in the Journal of Marriage and Family, married individuals have a lower mortality risk than their unmarried peers. So research consistently shows that couples in a committed marriage live longer than single couples, but why is that?
According to psychotherapist Shira Burstein, the emotional support possible in marriage gives each partner the feeling of being ‘heard,’ contributing to overall well-being and stress reduction. This could be one of the reasons why research has shown that married individuals have lower rates of depression and anxiety.
A study published in the journal JAMA Network Open found that being married was associated with a 15% overall lower risk of death from all causes compared to those who are unmarried.
Improved mental health
Relationships strengthen psychological health. Inadequate social support have been strongly linked to higher rates of depression, loneliness, and social isolation, which have been linked to lower health outcomes (and may be more common among singles).
Decreased stress levels
Additionally, married people tend to take fewer risks, eat better, and live longer than single people. There is increasing proof that married people are more likely than single people to keep up with routine health visits and follow prescriptions. All of the aforementioned benefits may significantly impact an individual’s stress levels.
Additional Immune Functions
Studies show that people in good relationships have better immune systems than those who do not. Additionally, married people tend to produce less cortisol compared to single people. Because elevated cortisol levels can impair immune function and cortisol levels often correlate with stress levels, this may be significant.
The Outlook For the Future
A study published in the American Journal of Public Health found that married individuals are less likely to develop cardiovascular diseases, such as heart attack and stroke. Additionally, a study published in the Journal of Gerontology claims that married individuals have a lower risk of developing Alzheimer’s disease and other forms of dementia than single individuals. That may be why your partner always knows where you left your car keys or wallet.
Social Benefits
The benefits of marriage are not limited to social security and federal benefits. Besides plenty of financial and health benefits, marriage benefits are also social. So naturally, when you mingle with someone else, you’ll enter a new group of family and friends. Moreover, being part of a community becomes easier since you’re likely to settle together.
Wider social circle
First, you might need to socialize more simply because you need time with others. Alternatively, you and your partner could attend social events to share memories and experiences and create new connections with people.
Conversely, some individuals might have fewer social relationships after marriage, mainly if they had a sizable buddy network or engaged in many social activities before getting hitched. So, in the end, it entirely depends on your personality and preferences.
Better relationships with family and friends
Some people may spend more time with their families during holidays and other celebrations after getting married since it brings their families closer together. People may get along better and establish new friends due to this.
Contrarily, marriage may lead some people to alter their priorities and how they interact with their friends and family. For example, as they focus on strengthening their marriage and beginning a family, newlyweds may spend less time with their friends.
A sense of belonging and community
Marriage can give people a buddy, a social support network, and the chance to talk about their experiences. In addition, married couples might partake in social activities like attending events or spending time with friends and family. This can give people a sense of community and belonging while also assisting them in growing their social networks.
Recap
In conclusion, marriage can provide individuals with several financial and legal benefits. One of the most significant benefits is the ability to file a joint tax return, resulting in a lower overall tax bill and increased standard deductions. This can be especially beneficial for couples with combined incomes that push them into higher tax brackets.
Civil unions and domestic partnerships also provide many financial benefits like marriage. However, same-sex married couples may sometimes have access to the same federal benefits and tax advantages. In addition, health insurance plans, military, and pension benefits can also be affected by marital status, and individuals should consider these factors when deciding marriage.
Moreover, marriage can positively impact credit scores, retirement benefits, and income tax credits. Still, it is essential to remember that these benefits depend on individual circumstances and income levels.
Finally, same-sex spouses and married couples should be aware of potential marriage penalties and changes in tax thresholds, especially when filing federal returns. Marriage can provide individuals with several financial, social, and emotional benefits.
