A Financial Advisor’s Tips for Newlyweds

By Hightower Westchester on October 4, 2018

So, you’ve walked down the aisle and cut the cake, but you are not out of the woods just yet.  There are still a few tasks left on your newlywed checklist to be taken care of before you jet off on your honeymoon…or maybe they can wait until you get back.  As you embark on this exciting new phase in your lives, there are key tasks and considerations that can help you build a strong foundation for your future.  The first year of marriage is incredibly important for your future happiness and the sooner you start knocking off these tasks the better.

Obtain Your Marriage Certificate

After your trip to city hall to obtain a marriage license, you are not done!  To receive your marriage certificate, this license must often be signed by both you and your spouse, your officiant, and witnesses following the ceremony and returned to that same city hall office.  In some cases, this must be done as soon as possible.  In New York City, your signed marriage license must be returned (either in person or by mail) within five days of your ceremony!  Keep in mind the procedures and requirements may vary from state to state.

Changing Your Name

If you or your spouse, or both of you, have decided to change your name, then you have a decent amount of paperwork ahead of you.  If you intend to take your new spouse’s last name, changing your name on important legal documents should be a priority.

You’ll need to provide your official marriage certificate to validate your name change, so we recommend ordering multiple copies of your certificate when you send it in with your officiant’s and witnesses’ signatures after the ceremony.  (In some states and counties, you can do this when you apply for a marriage license.)

Step 1:  Social Security Card

• Where to go: Your local Social Security office
• What you need: Official marriage certificate, completed form
• Cost: Free!
• Turnaround Time: 10 days

Step 2:  Driver’s License

• Where to go: Your local DMV
• What you need: Official marriage certificate, new social security card, completed form
• Cost: Varies by state
• Turnaround Time: ~4 weeks

Step 3:  Passport

• Where to go: Update online or via mail
• What you need: Official marriage certificate, completed form
• Cost: Free, if updated within a year
• Turnaround Time: 4-6 weeks

A few other tips – for the easiest transition, you’ll want to make sure you apply for your new Social Security card, driver’s license, passport, and other forms of identification in the right order; then update places like your employer, banks, and utility providers with your new information.  There are additional resources, like name-change checklists, to help you navigate the process.

After changing your name on key documents, additional tips, tasks and considerations include:

Updating & Combining Accounts

You will need your official marriage certificate, updated driver’s license and new social security card to update your name on bank accounts, credit cards, mortgage/lease and investment accounts.

Update Your Housing Documents

If you and your spouse did not live together prior to your wedding, this will likely be one of the biggest adjustments you’ll face as newlyweds.  Be sure to make your co-resident status official by adding your spouse to your lease or title as well as your homeowners or renter’s insurance policy.

When you combine insurance, it’s also wise to update your policy.  Make sure you add enough coverage for all your possessions, including any and all important items (such as your rings or valuable gifts) you’ve recently acquired.

Discussing Finances

Make sure you and your spouse are aligned and transparent about finances.  Work with a financial advisor to help you crystalize long-term saving goals (for home ownership, future children’s education, etc.), address debt (such as student loans) and develop plans for budgeting and spending.

Comparing Health Insurance Plans

Because marriage is considered a “Life Event,” you can change your health insurance plan through your employer.  Compare health insurance plans with your spouse to determine which is the most cost-efficient or beneficial for both of you, or if you should stay on individual plans.

Updating Your Estate Plan & Beneficiaries

Step 1:  Retirement & Existing Life Insurance

Review your current beneficiaries to make sure they are consistent with your long-term estate plan.  Contact your current financial institution to help you list your spouse as the primary beneficiary on each account/policy to help avoid unnecessary taxes and probate costs.

Step 2:  Life Insurance

Contact your financial advisor to help you evaluate existing or additional life insurance options.

Step 3:  Wills & Power of Attorney

Contact your attorney to help you add your spouse to your current Will, as well as to update your Durable Power of Attorney and the Durable Power of Attorney for Health Care

It may dampen the mood but planning for the worst so soon after the happiest day of your life is important.  Examples such as updating your life insurance and estate is essential.  You will likely want to name your spouse as your new beneficiary and durable power of attorney, as well as include them in your will.  And for those of you that think you’re too young to have a will, think again.

Choosing Your New Tax Filing Status

The IRS considers you married for an entire year if you are married as of December 31, giving you the option to file taxes together or separately.  Consult with your financial advisor and/or tax planning professional to help you determine an efficient filing status and help you minimize taxes.

Build a Financial Plan

Every individual handles their finances differently.  But whether you decide to combine accounts or maintain separate ones, you’ll need to sit down and have a frank discussion on how you two will spend your money.  “I’ve been in this industry long enough to know that client’s and their spouses who do not discuss their finances in a transparent manner early on in their relationship, often have financial difficulties over the long-term” says Roman Ciosek, Managing Director and Partner at HighTower Westchester.  It is critical to discuss your income and create a realistic budget that considers both your short, intermediate and long-term goals. (Read our blog “How Do I Create Financial Goals…and Stick To Them?”)

Richard Flahive – Private Wealth Advisor and Director of Research & Planning – HighTower Westchester
914.825.8639 – rflahive@hightoweradvisors.com