Knowing you’ve found your other half and getting to do life with them is without a doubt the best part of getting married. Nothing compares to the joy, passion and constant companionship that comes with being a spouse, but there are some other practical benefits to married life too. We’ve outlined a few of the big ones.
1. Tax Deduction
When you’re married, the IRS allows for unlimited marital tax deduction, which means you and your spouse can make unlimited transfers of property between each other, free of tax. This also applies to estate and gift taxes.
2. Social Security
If you’re a nonworking spouse, the spousal benefit is a great perk of being married. This benefit allows you to claim part of your spouse’s benefits, though you’ll need to wait until you’re 62 to claim the full amount otherwise it will be reduced because you’re filing early.
3. Health insurance
Being under the same insurance provider as your spouse can help reduce your deductibles and out-of-pocket costs through embedded deductibles. Coming under your spouse’s health insurance plan is a great option if one spouse’s employer doesn’t provide health insurance, your spouse has better options through their employer or if one spouse is unemployed.
As a married couple, if one of you doesn’t have a job, the employed spouse can contribute to the other’s IRA, or Individual Retirement Account, through a spousal IRA. Being married also allows one spouse to roll over their IRA into their partner’s IRA when they die.
5. Home buying
Tying the knot could also help you and your spouse become homeowners quicker and easier. Being married is a more favorable situation for mortgage lenders compared to having two unrelated people on a mortgage, so it may be easier for you to secure a mortgage and get better loan terms as a married couple. Having two incomes may make you eligible for a larger loan too. However, lenders will always look back to income, debt and credit scores, and they will consider the lower middle credit score between the two of you. So if you or your spouse don’t have a great income, have a lot of debt or have a bad credit score, it may be best to leave either your spouse or yourself off the mortgage application.