Congratulations!
You’ve just gotten married. A whole new life is in front of you. New memories, adventures, milestones, family dynamics…and a bunch of other little financial and administrative things to take care of.
Wait! What?
Yes, in addition to merging different belief systems and financial habits (don’t assume you have been taught the same things about money); marriage, like many life events, changes your circumstances. Documents and agencies will need to be updated, and you now have common goals and financial plans to align. It can seem overwhelming, but it doesn’t need to be.
Here’s a checklist of a few of the item’s newlyweds will need to address:
- Administrative Updates
- Name and Address Changes – Updating Drivers Licenses, Passports, bank records, post office information, and other documents is important. Take the time to make these changes all at once to ensure they are taken care of in a timely manner.
- Social Security – Remember to file a Form SS-5, Application for a Social Security Card to reflect the most current personal information.
- IRS Update – Your filing address for taxes needs to match what the IRS has on record. Make certain to take care of this quickly to avoid complications with filing a return.
- Update Your Withholding – Review the tax withholding status of both spouses. You may find that your combined income puts you in a higher tax bracket. Update your Form W-4 Employee’s Withholding Allowance with your employer to ensure the appropriate amount of tax is withheld.
- Review Your Financial Situation
- Financial Goals –Maybe you’re preparing for children. Maybe you want to purchase a home… Marriage changes financial goals. Regardless of the goal, now is the time to get on the same page.
- Estate Planning – Estate planning is a commonly neglected piece of effective financial planning. I encourage all Married couples to execute a solid estate plan. This will include the following: A Will, Health Care Power of Attorney, Financial Power of Attorney, and Medical Directive. Depending on your assets, you might also consider establishing a Revocable Living Trust.
- Beneficiaries – Often, prior to marriage parents are listed as beneficiaries on retirement plans (401k and IRA’s) and life insurance. This will need to be updated to include your new spouse.
- Insurance – Reviewing and updating your insurance planning is vital.
- Health Insurance – Now that you are married, you may be able to obtain coverage under an already existing employer sponsored plan from one spouse or the other. Marriage is a qualifying event, so you will be able to make changes to your coverage outside of the open enrollment period.
- Property and Casualty – Reach out to your Home and Auto Insurance agent. There may be discounts for married couples that you have been missing out on. Use this as a reason to re-evaluate your coverage.
- Life Insurance – While you may already have life insurance through your employer, marriage will most likely change the amount of death benefit needed to protect your growing family. Be sure to add your spouse as a beneficiary.
- Income Protection – Since your income is now supporting someone else, just like life insurance your disability insurance coverage should be reviewed and increased if needed.
Marriage is a wonderful thing, joining lives with another person is a big step in life. This checklist can seem intimidating, but it doesn’t need to be. Consider setting up an appointment with your financial planner to make sure you’re on track for this next chapter of life.
Resources:
Social Security: WWW.SSA.GOV
Tax Withholding Estimator: www.irs.gov/individuals/tax-withholding-estimator
Life Insurance Needs Calculators: lifehappens.org/
SCDMV: www.scdmvonline.com/
Michael P Green is a Certified Financial Planning Professional™ and Wealth Management Advisor with Apollon Wealth Management, an Independent Registered Investment Advisory Firm with offices in Charleston and Mt. Pleasant. He earned his B.A. from the University at Albany and M.B.A. from the Sage Graduate School, in Albany, NY. In addition to being a Certified Financial Planning Professional™ (CFP®); Michael also holds the Chartered Life Underwriter (CLU®), Chartered Financial Consultant (ChFC®), and Retirement Income Certified Professional (RICP®) designations.
Apollon Wealth Management, LLC (“Apollon Wealth”) provides advice and makes recommendations based on the specific needs and circumstances of each client. For clients with managed accounts, Apollon Wealth has discretionary authority over investment decisions. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph, or marketing price to make decisions. The information contained herein is intended for information purposes only, is not a recommendation to buy or sell any security and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances.