With this Ring, I Add Thee To My Benefits

What to consider when adding a partner or spouse to your benefits.

The largest percentage of U.S. weddings take place in June, at 10.8%. Most brides and grooms are thinking about their menu, guest list, and venue. Some couples are even specifying what colors or patterns to wear for their guests, so their whole event is “insta-ready.” But beyond planning for the big day, brides- and grooms-to-be should also consider how to handle this life event in terms of how it impacts their benefits and bottom line. Benefits may not be nearly as exciting as bouquets, but they’ll last longer. 

Within the benefits world, there are multiple events that allow employees to make changes to their elections outside of an annual enrollment period: Marriage, divorce or separation, birth or adoption, retirement, death of a spouse or dependent, job change or loss of benefits, or disability/chronic illness.  

What to do after “I do” 

Employers can provide a checklist or benefits administration solution that helps guide employees through the long lists of things to do. It’s estimated that the average age for marriage in the U.S. is 31, which means some younger couples might be fresh off of their parents’ benefits or one might not have access to benefits through their job. Having a decision-support tool that walks them through spending their benefits dollars and comparing plan and coverage options can be especially helpful.  

In the United States, there are several benefits and legal considerations associated with marriage. Some common benefits questions and actions to consider include: 

1. Marriage Tax Benefits: You may be eligible for certain tax benefits, such as filing joint tax returns or claiming deductions and credits available to married couples. 

2. Medical Insurance: If one spouse has employer-sponsored health insurance, they may be able to add their spouse to the plan (but make sure to review the spousal and dependent surcharges and requirements if so).  

3. Social Security Benefits: Marriage can affect Social Security benefits, particularly if one spouse earns significantly more than the other. Spouses may be eligible for spousal benefits or survivor benefits based on their partner’s work history. 

4. Inheritance and Estate Planning: Marriage can impact inheritance laws, allowing spouses to inherit assets more easily. It’s essential to review and update estate planning documents, such as wills and beneficiary designations, after getting married. 

5. Employer Benefits: Marriage may qualify you for certain benefits offered by your spouse’s employer, such as retirement plans, life insurance, or family leave policies. Check with your respective employers for available options. 

For richer or poorer… 

Employees should consider some of the other implications that come with potentially combining accounts or items that accompany a legal marriage. Some companies offer financial wellness classes or coaching, and this life event is a great time to remind newlyweds of those options. 

1. Update Legal Documents: Review and update important legal documents, including your will, power of attorney, and healthcare proxy, to reflect your new marital status and ensure your wishes are protected. 

2. Name Change: If you or your partner plan to change your name, you’ll need to update your identification documents, such as your driver’s license, passport, and social security card. This process typically involves obtaining a marriage certificate and visiting the appropriate government agencies. 

3. Financial Considerations: Discuss financial matters with your spouse, such as merging bank accounts, creating a joint budget, and deciding how to manage your finances collectively. 

4. Insurance Coverage: Evaluate your insurance policies, such as auto, home, and life insurance, to determine if any updates or changes are necessary after getting married. 

5. Beneficiary Designations: Review and update beneficiary designations on your retirement accounts, life insurance policies, and other financial accounts to ensure they reflect your new marital status and desired beneficiaries. 

See what employees of all ages are thinking about their benefits, including interesting gender breakdowns – are they ready for emergencies and do they consider themselves healthy? Download the 2023 Benefits Insights Report: www.businessolver.com/benefits-insights.