Martin Lewis: Is being married financially worth it? The nine big benefits and how to use them...

Drofflies

A few relatively small financial benefits, compared with a huge financial risk in the event that the marriage fails for any reason, as increasingly they do. The risk rises in cases where there is financial imbalance as it is then effectively a contract that incentivises one party to break it.

Vestandpants

I agree with Grassmarket. Second home policies directly discriminate against the protected characteristic of marriage.

As unmarried singles in a relationship, two individuals can each own a home in their own right and each will usually qualify for a 25% discount on Council Tax as single occupants. These homes could both be 10 bedroom castles. As a married couple you are only allowed to own half a home each without penalty, even if this is a one bedroom flat.

And shortly, where a married couple owns two homes, one home will have to pay full Council Tax and the other will have to pay double Council Tax. This can result in several thousand pounds more tax each year.

In this scenario it pays to be divorced. 

If we are taxed as individuals not couples, then we should each receive the same individual allowances, irrespective of our living situation.

julianporter5

Robinson2s said:

If I had known the true financial cost of divorce, I would’ve never married. Given that so many marriages fail, we should educate children about the true cost rather than pretend divorce doesn’t happen. There’s so much social pressure to marry and biggest mistake anyone can make

It’s an opportunity to discuss with children what entering into a contract actually involves. Surely Moneysupermarket is ideally placed to comment on contracts involving money. As a divorced father I’ve spoken to my son about what the contract means and that he should go into the contract happy to accept the consequences if things do go wrong. Perhaps there would be less bitterness around divorce if it were really clear what the consequence of divorce could be. Surely a subject for money and mental health.

Bravoboom

Can I benefit from tax breaks if my spouse is not a resident in the UK, and instead resides and work in Germany? I expect the answer is probably no, but is there a chance to benefit from existing tax treaties if the salary conditions apply to the non resident spouse? 

3007EAH

Getting married later in life was the most expensive mistake I have ever made. I'm about to lose my home and half of everything I worked hard all my life for to a man who is without shame because the divorce law supports the greedy and heartless. He left me for a richer "old flame" in Brazil when my money ran out.  I feel like I've been scammed. WARNING  Ladies do not marry !

obr42

"There are far more protections if the relationship ends [...]

IWhile it won't be top of your mind when entering a marriage, if there is a relationship breakdown, there are far more legal protections in place for individuals in a marriage than those cohabiting. "

Of course, one person's "far more legal protections" is another person's "getting ABSOLUTLY FLEECED".  If you came into the marriage with a house, significant equity and savings you might lose the lot in a divorce.  You're talking life-long damage to your financial well-being, potentially going from home ownership to being a life-long renter plus significant difficulty in getting a clean break so that even if you do get back on your feet your ex might come back to you several years later for another bite of the cherry.

The consequences of divorce can be financially devastating if you are the person bringing assets to the marriage, and a pre-nup is unlikely to help. The lovely person you married might be utterly vindictive when you divorce them, regardless of who was at fault, and the courts don't care about it.

obr42

3007EAH said:

Getting married later in life was the most expensive mistake I have ever made. I'm about to lose my home and half of everything I worked hard all my life for to a man who is without shame because the divorce law supports the greedy and heartless. He left me for a richer "old flame" in Brazil when my money ran out.  I feel like I've been scammed. WARNING  Ladies do not marry !

And that works both ways, not just ladies.  My sympathies.

obr42

The key thing to understand about the marriage contract is that it is purely a financial contract.  Love or even decent behaviour cannot be enforced, but my goodness they'll take your cash!

adeyshrops

Here's a question no one seems to have a answer for.  When getting married if you both own your own houses you may be liable to CGT as you are only allowed 1 PRR. How much liability for CGT do you have. Is it from when your purchases the property, in my case over 20 years or is it from the date of the marriage.  So the question for me is do we sell 1 property before we get married, or continue to live in both houses.   Any thoughts?

silvercar

adeyshrops said:

Here's a question no one seems to have a answer for.  When getting married if you both own your own houses you may be liable to CGT as you are only allowed 1 PRR. How much liability for CGT do you have. Is it from when your purchases the property, in my case over 20 years or is it from the date of the marriage.  So the question for me is do we sell 1 property before we get married, or continue to live in both houses.   Any thoughts?

Post on the tax board, or have a look there, I've seen similar questions. I thought on marriage you acquire the PPR and the purchase date and price, but I may be wrong.