Economics of Same Sex Marriage

  The buzz spread across the nation is the over turning of the same sex marriage ban by California 9th District Judge Vaughn Walker. While many think this has religious or moral implications this is more about money and benefits than anything else. If same sex couples want to live together they will and just like heterosexuals they don’t need an official blessing to do so.

I was watching the news yesterday when the brouhaha was unfolding and wondered how many people would see the economic problems that this would solve and create? This indeed is more about money, taxes, benefits, insurance, social security, credit, tax benefits and estate planning then it is about being recognized by a higher authority.

Once same sex marriage is recognized officially across the nation it will create concerns in corporate and government  offices. Let’s go through some of the benefits that married folks have that single people do not enjoy.

• Spousal health insurance. One partner carries the plan for both and there is a premium reduction for a spouse.
• Mortgages, credit cards, loans become easier with dual incomes.
• Defined benefit pension plan benefits do not die with the worker but continue to the spousal member.
• Social security spousal benefits.
• Retirement plan tax deferred rollover to a spousal retirement account.
• Estate martial exclusion.

I am sure that given time we can come up with more but married couples do enjoy certain economic benefits that singles do not. At a certain point in life it makes more sense to be married then not.

So while there are certain people that scream it’s morally corrupt it really boils down to the money.

When same sex marriage becomes official it may cause corporate benefit managers, retirement plan administrators, insurance companies and government benefit planners to redo benefits and taxation of certain plans. It may also cause more heterosexual singles to marry simply for the benefits.

If you have questions call Paul @ 877 783 7080 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.