As wedding season peaks, many couples celebrate the start of a new journey. Marriage is more than just a personal and legal commitment—it establishes a financial partnership that affects your taxes, estate planning, and long-term goals.
To secure your future together, couples should thoughtfully consider the financial implications of marriage and develop a personalized plan that safeguards assets while aligning with their shared vision.
Choosing Between Joint and Separate Filing
Marriage impacts your tax filing options. You can select between Married Filing Jointly and Married Filing Separately, each with unique benefits.
- Married Filing Jointly: This option typically benefits couples with different income levels by offering a higher standard deduction ($30,000 in 2025) and access to valuable tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit. It also simplifies tax filing.
- Married Filing Separately: This may be preferable if one spouse has significant expenses or losses to deduct. However, filing separately can limit eligibility for some tax credits and usually results in higher overall taxes.
To choose the best option, consult a tax professional and estimate your taxes under both statuses. Be sure to update your W-4 forms accordingly to avoid over- or under-withholding of taxes.
Learn more about tax filing status from the IRS.
Protecting Assets with Prenuptial Agreements
A prenuptial agreement (prenup) is a legal contract signed before marriage that helps protect pre-marital wealth, family businesses, inheritances, or investment portfolios. Prenups clearly outline how assets, debts, and financial responsibilities will be managed in the event of divorce or upon death.
While prenuptial agreements (prenups) can benefit many couples, for high-net-worth (HNW) individuals, they are a commonly used means of designating separate property, such as family businesses, trusts, or complex investments, and protecting those assets from marital claims. They can also clarify how taxes on income or investments related to these assets will be handled between spouses.
Updating Your Estate Plan After Marriage
Marriage often requires revisiting your estate plan to ensure it reflects your current wishes and legal rights.
In New York, if you pass away without a will, state law typically grants your spouse a 100% portion of your estate. However, if there are children, the spouse will only receive $50,000 plus half of the residuary. Update your will to specify who will inherit your assets, and review beneficiary designations on accounts such as life insurance or retirement plans.
Consider advanced estate planning tools such as:
- Credit Shelter Trusts to provide for your spouse while minimizing estate taxes.
- Qualified Terminable Interest Property (QTIP) Trusts to support a spouse’s lifetime while protecting children from a previous marriage.
These tools, combined with clear communication and regular reviews, help ensure your estate plan aligns with your family’s unique needs and long-term goals.
Managing Finances as a Couple: Joint, Separate, or Hybrid?
Every couple’s financial management style is unique. Whether you combine finances, keep them separate, or adopt a hybrid approach, clear communication and organization are crucial:
- Joint accounts can help simplify budgeting and tax filing for shared expenses.
- Separate accounts can provide financial independence and increased clarity for personal spending.
- Hybrid approaches strike a balance between shared costs and personal autonomy. For example, couples might share a joint account for household bills but keep separate accounts for personal expenses.
Regardless of your approach, regular financial check-ins and thorough record-keeping help align your goals.
Strategic Planning for Your Financial Future Together
Marriage offers a valuable opportunity to coordinate investments and savings, such as pooling funds for a down payment on a home or for retirement.
Maximize tax-deferred growth by synchronizing your retirement accounts, and consider the benefits of a spousal IRA, which allows a non-working spouse to contribute based on the working spouse’s income.
Balance paying down debt with long-term objectives like early retirement or legacy planning. Review your financial strategy annually to adapt to life changes and ensure both partners’ aspirations are met.
Business Ownership and Marriage: What You Need to Know
If one or both spouses own a business, marriage can add complexity to your financial planning. In the event of a divorce, a spouse may have a legal claim to a portion of the business profits if the business is considered marital property.
Protect your business by updating operating or shareholder agreements to clarify ownership and involvement. Having early conversations about succession planning—whether your spouse will inherit, manage, or eventually transfer ownership—is crucial to preserving your business legacy and ensuring a smooth transition in the future.
Plan Your Financial Future with Confidence
The financial intricacies of marriage require thoughtful planning and expert guidance. By proactively addressing the tax implications of marriage, securing your assets with prenuptial agreements, and building a comprehensive estate plan, you lay a solid foundation for your shared financial future.
At Grassi, our Private Client Services and Trust and Estates Practices deliver tailored solutions that optimize taxes, protect your assets, and help you create a lasting legacy. Whether you’re navigating complex wealth management or planning for life’s milestones, we provide the expertise and personalized strategies to support your goals.
Contact us today to start building a financial plan that strengthens your partnership and secures your family’s future for years to come.
