Is it a taboo subject to suggest that people who are living together should possibly get married because it will be beneficial to them financially? This is a subject that 42 years ago, when I got married, I would have never dreamt that it might become a taboo subject. Today, this week, I read a The Wall Street Journal article from Wednesday, November 9th titled “Moving in, but not moving up: unmarried face a wealth gap”. Here is the general gist of this article, and I'm going to hit some of the highlights here in a moment: are you really all in when you are living together, but not married? Maybe not, and it's because you have not combined not only your resources, but you have not combined your future-thinking together.
From the article: “A walk down the aisle can be a route to greater wealth and prosperity for couples in the United States. Married couples have a higher net worth and more likely to be home owners than their unmarried counterparts. As of 2019, the median net worth for cohabiting couples aged 25-to-34 was $17,372, a quarter of that, which was $68,210 for married couples in the same age range. This is according to data from the Federal Reserve Bank in St. Louis.”
The article goes on to say, “There are obviously legal and tax benefits to marriage. Research, though, suggests the financial security and long-term mindset of those who tie the knot may also be a powerful driver of wealth. More married couples pool their money such as sharing savings accounts and investing. Cohabiting couples are less likely to combine their finances and their investments. Working with two incomes and combining their investments to maximize compound interest can significantly increase a couple's financial prospects.”
This reminds me of when my wife and I first got married: we sometimes referred to ourselves as being as poor as church mice. If we had had children at that time, we would have qualified for government “cheese”. We were at the very beginning of our careers after receiving our diplomas. We were in a small community and just starting to get by and learning our trades. Nowadays, it seems like marriage is becoming more of a capstone only after couples have been trying to get their lives together. I think that sometimes there is a benefit to try to get your life together…together. You learn more that way, but the article continues: “Married people may have been much more likely to have those conversations around what goals that they have for their own financial future. There seems to be something very special and unique in deciding to share finances. Un-married couples may be less willing to commingle their money…our money, our income represents a huge part of who we are (as married couples).”
So, this is something that you may wish to share. This is something that you may wish to consider. If you are unmarried, but are together: you may not have made the full commitment. You might have made a commitment to a house, maybe a dog, or maybe even a kid, but it's about making a full commitment that allows your thinking to be more long-term about where you are as far as your own financial future. Is it his and hers? Or is it truly ours? Again, this is not an opinion, but a fact that marriage can financially create winners.
