Considering marriage? It’s vital to understand the financial benefits and drawbacks before making a commitment.

Historically, marriage was often an economic transaction. Brides were “given away” with dowries, while grooms’ families would pay for a bride in hopes of children and domestic duties. A genuine emotional connection was just a pleasant addition.

Fortunately, times have changed. As of 2024, more women are leading Fortune 500 companies than ever, and we’re gaining financial independence through investing. Yet, marriage still has economic ramifications. Let’s examine the financial pros and cons of marriage.

1. Pro: Enhanced Wealth Building Potential

According to Stacy Francis, founder and CEO of Francis Financial, “Once you say ‘I do,’ your income often increases while expenses decrease.” This trend leads to married couples acquiring more assets compared to their single counterparts.

A dual-income household can create a stronger financial profile, which may help couples secure better mortgage or loan options if they apply individually.

Research indicates that marriage positively influences wealth accumulation. Jay Zagorsky from Ohio State University revealed that married individuals report a 77 percent increase in net worth compared to single individuals in their 20s to early 40s. Moreover, wealth tends to rise by 16 percent for each year of marriage.

2. Con: Wedding Expenses Can Be High

The combined costs of receptions, attire, flowers, and honeymoons can make couples hesitate to marry.

Not everyone prefers a city hall wedding; many aspire to a dream ceremony, which can take time to save for. In 2023, the average wedding cost reached $35,000, according to wedding resource The Knot. That’s a significant amount that could be allocated elsewhere.

3. Pro: Improved Financial Responsibility

When you become a couple, many financial benefits and challenges arise. You might feel more compelled to manage your personal finances effectively.

“Ignoring finances is simpler when only your well-being is at stake,” explains Manisha Thakor, a wealth strategist. “But it’s different when your partner’s financial future is involved.”

This awareness often leads to better spending and saving habits.

4. Con: Increased Financial Tension

Money issues rank among the top causes of marital disputes and are a major predictor of divorce. Often, couples marry those with contrasting financial habits, resulting in stress over financial planning.

“Difficulties arise when couples don’t establish realistic spending limits,” Francis notes. “If one partner is a spender and the other a saver, conflicts can emerge.”

5. Con: Potentially Higher Tax Liability

The so-called “marriage penalty” can lead to higher tax bills when dual-income couples file jointly, often pushing them into a higher tax bracket.

Bonus Tax Pro: Marriage Could Benefit Your Finances
In some situations, marriage may bring a tax “bonus” resulting in lower taxes, especially for couples with a significant income disparity. According to TurboTax, combining incomes on a joint return can sometimes lower the overall tax burden for couples with one high earner and a stay-at-home spouse.

6. Pro: Access to IRAs Regardless of Employment

To contribute to an individual retirement account (IRA), you typically need earned income. However, married couples can take advantage of spousal IRAs, allowing a working spouse to contribute for a nonworking partner. This ensures that stay-at-home parents or those who lose their jobs can still save for retirement.

7. Pro: Shared Benefits

If you lack employer-sponsored health insurance, you might be eligible to join your spouse’s plan. Many group health plans allow spouses to be added, often at a lower cost than purchasing individual coverage.

Additionally, you may qualify for spousal Social Security benefits. Once your partner files for their benefits at age 62 or older, you can claim up to 50 percent of their full benefit at their retirement age.

8. Pro: Legal Protections in the Event of a Death

Estate planning is crucial for couples. If a spouse passes without a will, intestacy laws can grant you access to certain assets depending on your state.

Jon Robertson, a Certified Financial Planner, explains, “Married couples enjoy legal protections. Without marriage, intestacy rules won’t apply, leaving partners without inheritance unless specified in a will.”