Finances for newly weds

This post was written by Stephanie Cuellar Butler, Contributing Writer on June 17, 2009
Posted Under: Cheap Living Tips

Future newlyweds be warned: picking the right bridesmaids’ dresses and special music is not the hard part of getting married. The labor begins when the party ends, and for many it kicks off with an identity change.

  • The good news for name-changers is that you could really legally change your name to Princess Consuela Bananahammock if you wanted to. The bad news is that it’s going to take quite a few steps. Take a full weekday (not a holiday), some good shoes, and all the documents that make you who you are: birth certificate, SS card, driver’s license and a certified marriage license. This site has a good list of places you’ll want to notify about your name change.

  • The cost of all the changes (driver’s license, passport, certified copies, etc.) varies from state to state, but plan on $50-150. For an extra $30 or so you can save yourself the running around town and fill in up-to-date, state-specific forms with the help of an online name change service. I used MissNowMrs.com because of the BBB affiliation. Any reputable site should give you the option writing in your SSN and other private information after printing the forms; you should also see an https:// at all times on the website to ensure a secure transaction.
  • Once your names are in order, it’s time for a bit of a downer: writing the wills. This might seem unnecessary and gloomy as you’re barely getting your thank-you notes written, but it will save precious time and energy for the surviving spouse or other family members if the unthinkable happens.
  • A lawyer specializing in family law can walk you through living wills and power of attorney, but a common basic for newlyweds without kids is known as an “I love you will.” I love you wills are done by each spouse, and basically say that in the event of one’s death, the surviving spouse will get everything. Plan on about $250 to have I love you wills done. Ask a lawyer if this might hurt survivors’ tax-wise, but if the value of your combined assets, including life insurance, is less than $2 million, this might be a good option for you.
  • Enough about death. On to taxes! For middle-income newlyweds filing jointly on income taxes, you can thank former President Bush for a lesser “marriage penalty,” due to the Jobs and Growth Tax Relief Reconciliation Act of 2003.
  • The marriage penalty refers to couples having to pay more in taxes than they had to as singles. There’s a lot of fuss about it, but the truth is more couples (51%) get marriage bonuses than get marriage penalties. Couples in which one partner makes significantly more than the other get these bonuses (tax breaks), while similar incomes make it more likely that they’ll get the penalty.
  • Liz Pulliam Weston gives a good take on the marriage penalty here.
  • Right about the time you (and I) have all the name changing, wills and tax forms done, it’ll be time to bust out that freezer-burned cake. Savor cutting into its lazy, mocking layers as you finally get to relax in the assurance that you and your spouse are off to a great start.
  • In reference to name-changing: the Social Security Office may not have your information processed for 24 hours after they receive your documents in the mail, or in person.
    You won't be able to change your driver's license until the SSO has processed you, so it is best to wait a day between the two changes. You might make it all in one day, but why wait in line at the DMV just to be sent back home empty-handed?
  • Yes, you are certainly better off checking with the DMV online first. Check to make sure you have everything they require and check the local office's wait time so you'll save yourself a ton of time.
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