Financial Checklist for Marriage

Written By: Ryan Rink, CFP®, EA, ChFC®, CLTC®

Congratulations – you just got married and are starting a new chapter in your life! Marriage is a major milestone and there are a variety of financial implications to consider. Let’s cover multiple financial planning items newlyweds should address shortly after their big day to set a solid foundation for their shared financial journey.

Name/Address Change

Oftentimes, the wife will go to the county courthouse to change her last name. Once you have a copy of your marriage certificate and/or updated Social Security card, you can update your name on your bank and investment accounts, as well as any insurance policies. If necessary, you’ll also want to update your current address on all accounts, as well.

Cash Flow/Savings Plan

Cash flow planning will likely be an ongoing discussion throughout your marriage, but it’s important to talk about it right away to set expectations. Open and honest communication about finances is crucial in any marriage. Do you plan to merge financial accounts and retitle as joint, or would you prefer to keep them separate? Find out what works best for your situation – there is not a right or wrong answer to this question. Some couples choose to combine all finances into joint accounts, while others prefer a hybrid approach, maintaining individual accounts alongside joint accounts.

It also may be helpful to sit down and create a joint budget. This is a great time to talk about each other’s financial goals. You’ll want to create a savings plan for retirement and upcoming major expenses, such as buying a home, car or starting a family. Also, determine how much you’ll need to allocate towards general living expenses, as well as outstanding debt payments. Be sure to have 3-6 months of living expenses set aside in savings in case of an emergency, such as an unexpected expense or job loss.

Tax Planning

You’ll want to review your tax filing status now that you’re married. In most instances, it will make sense to switch to Married Filing Jointly (MFJ) versus Married Filing Single (MFS). With your tax status changing, you’ll want to review the tax withholding from your pay checks to make sure it is accurate and you’re not surprised with a large bill come tax season. You have the ability to change withholding through your human resources department, if needed.

Revisit the contributions to your retirement accounts. Should you be contributing pre-tax or Roth? This may change with another income added to the picture and you’re now in a higher or lower marginal tax bracket. If you’re contributing to a Roth IRA, double check you’re still eligible to contribute. The income phase out for Roth IRA contributions starts at $218,000 for MFJ (2023). If you’re no longer eligible to contribute to a Roth IRA, the ‘backdoor’ Roth IRA may be an option for you or your spouse.

Health Insurance

Prior to getting married, it’s likely both spouses were covered under separate health insurance plans.  You’ll want to re-evaluate both spouses’ coverage to see if it makes sense to go on a family plan with one spouse’s coverage, or if you should continue with separate policies. Marriage is considered a ‘qualifying life event’ which permits health insurance coverage changes during a plan mid-year, but only for a limited window (typically 30-60 days).

Life Insurance

The majority of single, young adults typically don’t have much life insurance coverage, primarily because they don’t have the need. They’ll often have a small amount through their employer, such as 1x salary or a fixed dollar amount, such as $50,000. Now that you’re married, your spouse/family likely depends on your income, thus creating a greater need for insurance. The employer amount may be enough to cover a funeral or outstanding auto loan, but likely wouldn’t be enough to replace lost income for years in the event one spouse passes away prematurely (especially with a mortgage). We often find term life insurance is a great option for younger individuals, since it provides the highest amount of coverage for the lowest cost. We recommend working with an independent life insurance agent to purchase coverage, since they are able to shop the market and find the best carrier for your needs.

Estate Plan

Now is a great time to create and/or review your estate plan. At a minimum, you’ll want to meet with a qualified estate attorney to review or draft wills, as well as financial and health care powers of attorney.  In some instances, a revocable living trust may make sense. A will names a guardian for your current or future children and distributes the assets via probate. The powers of attorney designate someone to make financial and health care decisions in the event you become incapacitated. Typically, someone will name their spouse as the primary, but give some thought as to who you’d like to name as contingents.  The person you name for finances may not be the same as health care.

You’ll also want to review and update the beneficiaries on all bank/investment accounts, as well as any life insurance policies.

If you’ve recently gotten married, feel free to reach out to your Shakespeare Financial Advisor at (262) 814-1600 with any questions you may have. 

You can also reference the following checklist for additional information:

Marriage Checklist