Article
Updated June 2026
At any age, marriage is an important decision that impacts almost every aspect of life. For older individuals, marriage presents even more unique challenges and opportunities. One of these challenges deals with finances.
Share Your Financial History Before the Wedding
Since the financial impact of marrying later in life can be complicated, it is especially important for older couples to discuss their financial situations with each other and also with their financial advisors. Compared with younger marriages, older individuals bring more personal and financial history into a marriage. It is not uncommon for one or both individuals to be dealing with grief from a deceased spouse or recovering from a divorce.
It is essential that older couples share their financial histories with each other. To stimulate the conversations, they might consider discussing some of the following helpful starter questions:
- What are your earliest memories connected to money?
- Was money discussed at the dinner table when you were a child?
- What is your current attitude or approach to philanthropy?
- Which money beliefs and attitudes have most helped you to this point in life?
To protect financial integrity, individuals may want to discuss maintaining separate credit or filing separate income tax returns. Since there are some financial obligations that one spouse assumes for the other, like medical bills, it is important that couples are candid about their financial obligations and address potential expenses such as long-term care.
Also, it may be important to ascertain the impact that marriage could have on each individual’s income. For example, marriage could impact the receipt of alimony, Medicare IRMAA surcharges, Medicaid, and Social Security benefits.
How Remarriage Affects Social Security Benefits
Consulting a Social Security benefits counselor is advisable to determine how a marriage will impact current and future benefits. Careful timing of a second marriage can often protect a widow’s benefits. Many people do not realize that they may qualify for Social Security benefits under both a spouse and a former spouse, as well as under their own record. Generally, if you have been married to a former spouse for at least 10 years, you will likely be eligible to claim some benefit based on the previous spouses’ earning record. A benefits counselor can help evaluate the application options and under which record(s) it is best to apply for maximum lifetime benefits.
Tax Implications of Marrying Later in Life
Although most people will not see a big income tax impact from getting married, they should evaluate if it makes sense for them to file a joint tax return or to file separately. Filing with a married status may provide an opportunity to make additional retirement account contributions. Some retirement plans require your spouse’s consent to take plan distributions and loans or to change beneficiary designations. Plan documents should be reviewed to ensure that they are coordinated with your financial goals. Marrying someone with a higher income could increase your Medicare Premiums, preclude you from receiving Medicaid assistance, and make more of your Social Security Benefits taxable.
Updating Estate Plans and Beneficiary Designations
Legal documents should also be coordinated with your new circumstances to ensure that your estate plan accurately reflects your wishes. These documents include your Last Will and Testament, Healthcare Power of Attorney, Financial Power of Attorney, and Trustees. Beneficiary designations on life insurance policies and retirement accounts may need to be changed when you marry to reflect your changing needs. You will also want to carefully consider any accounts that have Transfer on Death (TOD) or Payable on Death Beneficiaries (POD), as these accounts pass outside of the instructions listed in your estate documents.
Prenuptial Agreements and Protecting Family Assets
It is always smart to consider a prenuptial agreement to fairly address both spouses and to protect the family assets of each. Creating a trust is another way to offer protection for first families as well as new spouses. Couples should work with their attorney to update all legal documents.
Marriage at any age includes a marriage of finances. Open communication about financial goals and circumstances can contribute to a higher quality of life for both spouses. When you marry or remarry later in life, planning for the financial consequences can help ease the transition and ensure that your marriage will yield long-term dividends.
Frequently Asked Questions
Yes, most certainly. There are a multitude of factors that would impact your benefits. The two primary factors are your age and whether your former spouse had died or had been divorced.
For more information, visit the Social Security Website https://www.ssa.gov/blog/en/posts/2024-08-22.html
This is a very personal decision, and it is worth meeting with an attorney who has deep expertise to discuss.
Marrying someone with a higher income could increase your Medicare Premiums, preclude you from receiving Medicaid assistance, and make more of your Social Security Benefits taxable.
Yes, absolutely! You will want to review not only how your money is distributed at your death, but also who is managing the distribution of funds, directing where you are buried, and who is making healthcare decisions.
Your retirement accounts will remain in your name and will not be combined with those of your new spouse. You will want to ensure the beneficiaries on all your retirement accounts meet your wishes, as the accounts will transfer outside of what your Will or Trust documents might say.
If you are interested in speaking with an Abacus Financial Advisor, please reach out to us via phone or email. Abacus is a financial advisory and investment counsel firm focused on serving families with shared assets from businesses to commercial real estate to oil and gas holdings. Managing over $2 billion on behalf of its 300-plus families, Abacus consists of a team of multi-disciplinary experts who work collaboratively to serve its clients.
This article originally appeared in the June, 2011 issue of Midlands Business Trends.
