The Pros of Getting Married:
Income Tax: By filing a joint tax return, married couples whose incomes are different may be eligible for a lower tax rate, known as the “marriage bonus.” Refunds may now be available for already married same-sex couples who paid too much over the past three years.
Estate Tax: States that have an estate tax and that recognize same-sex marriages allow an unlimited marital deduction for a surviving spouse. The federal government now also recognizes the marital deduction – so no estate tax will be due for a surviving spouse.
Social Security: Same-sex couples are eligible for Social Security spousal benefits at retirement, when disabled, or at one spouse’s death, as long as they reside in a state that recognizes same-sex marriage.
Private Pension/Retirement Benefits: Following the Supreme Court decision, the Department of Labor stated that the term “spouse,” when pertaining to employee benefit plans, shall include same-sex spouses, even if the employee resides in a state that does not recognize the marriage.
The Cons of Getting Married:
Income Tax: Married couples whose incomes are both high may be subject to higher income tax rates and fewer deductions since they will now be required to file as “married” – known as the “marriage penalty.”
Medicaid: Since the assets and income of both spouses are considered for determining eligibility, being married can be a handicap if one spouse has income and assets that cause the couple to be above the eligibility limits. This can affect eligibility for nursing home care.
Divorce: If a married couple lives in a non-recognition state, even if lawfully married in a recognition state, divorce can be tricky, or even impossible.
