Pros & Cons to a Marriage License

[Anonymous]

My fiancee and I are getting married. We were wondering if we should get a marriage license. What are some pros and cons? For example, tax (income tax), health benefit, credit scores, buying a house and starting a business? We both have fico scores above 700.

Below is my assumption: (Please clarify if you know the answer)

Business loan:
WITHOUT MARRIAGE LIC:
If I apply for an business loan, only my fico score will be affected.
WITH MARRIAGE LIC:
The Business loan will both affect my wife and my fico scores.

Home Purchase:
WITHOUT MARRIAGE LIC:
My wife will get a better rate since the business loan is not affecting
her fico score.
WITH MARRIAGE LIC:
We will get a higher rate since the business loan is showing on both our
fico because of the marriage license.

What are the benefits of a marriage license when it comes to taxes? Total combine income is 100k per year and have 2 dependent we are supporting that we can claim at the end of the year that is under 18.

What we conclude: If we get the marriage license:
My wife will save 3k for not having to pay for health benefit because my work pays for it. If we don't get the marriage license: We will lose 3k each year but save more money, because at the end of the year, we will get a better tax income return (we got 7k for 2007). Overall, we will get a better rates for business loan and the home loan for not getting a marriage license.

[Anonymous]

Pros.. all the money you blow on the wedding and reception will be legally recognized.

Pros.. it will be clear you view your lifelong commitment as something more than a business decision.

Cons.. it won't be as easy to walk away.

Get the marriage license. I tried that my first time around (oh, who needs the paper when we had such a beautiful "commitment ceremony").. it doesn't work. It's not the same. I'm married *for real* now and it's an entirely different experience. 

[Anonymous]

I'm certainly no expert but I've heard that the biggest "con" to getting a marriage license is that you need to get married to get one......OK, don't get mad.....some of you out there were thinking the same thing. 

[haulingthescoreup]

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@Anonymous wrote:

Pros.. all the money you blow on the wedding and reception will be legally recognized.

Pros.. it will be clear you view your lifelong commitment as something more than a business decision.

Cons.. it won't be as easy to walk away.

Get the marriage license. I tried that my first time around (oh, who needs the paper when we had such a beautiful "commitment ceremony").. it doesn't work. It's not the same. I'm married *for real* now and it's an entirely different experience.

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I would have listed that as a pro!

[Anonymous]

hauling- I forgot that sarcasm doesn't transmit well over the internet.

[haulingthescoreup]

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@Anonymous wrote:

hauling- I forgot that sarcasm doesn't transmit well over the internet.

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Yes, I did realize it was sarcasm. Doesn't transmit in either direction, apparently!

[Anonymous]

Brilliant!

 lol

[Anonymous]

The absolute biggest con

IF you do ever decide to or have to walk away, it's likely to ruin you or both of you financially for 3-5 years.

UNLESS you have a prenupt and no kids.

YMMV

[Anonymous]

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@Anonymous wrote:

The absolute biggest con

IF you do ever decide to or have to walk away, it's likely to ruin you or both of you financially for 3-5 years.

UNLESS you have a prenupt and no kids.

YMMV

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Doesn't have to ruin credit. Just need to go in with understanding that if one walks away they can be responsible for all debt that is in both names. Just keep credit as separate as possible for more than just this reason. Good/bad what ever credit should be kept as separate as possible. If you ever get unsure stop borrowing and start PIF when you get things. If the worst happens you leave with out more debt. Always have separate credit cards or cards together with LOW limits. The low limits protect each other from revenge spending.

[MattH]

If you plan to buy property together then being legally married has major major major advantages.

If things go well and the couple stay together until they are parted by death the survivor gets a break on inheritance taxes. Prominent financial writer Suze Orman regularly complains in print that because same-sex partners cannot get legally married in most States (and won't get Federal recognition even if their State does allow marriages or civil unions), whenever she or her longstanding female partner dies the survivor will have to pay estate taxes because they both have substantial assets.

On the other hand, if the relationship does not last, well a LOT of the people on radio call-in shows about personal finance have major troubles because they bought a house with an unmarried partner and then split. Breaking up is always painful and messy, but at least with a legal marriage there are some established mechanisms for handling the legal and financial aspects.

Even if you do get married, and expect the relationship to be lifelong, keeping at least some money individually in each person's name is a good idea. My wife and I got hitched in 1991 and we still have individual bank accounts and credit cards. This lets each of us maintain an individual credit history. It also eliminates the many discussions I recall my parents having along the lines of "dear, what did you do with Check Number 1234?" AND, should one of us die suddenly, the other will have immediate access to some money while the legal and insurance wheels turn.

Message Edited by MattH on 06-21-2008 08:54 AM