Transcripts

"Money File"-Mid-Life Marriage

SUSIE GHARIB: In the "Money File" tonight, while it's not always romantic, there are financial pros and cons to be pondered when getting married later in life. Here's Eric Schurenberg, managing editor at "Money" magazine.

ERIC SCHURENBERG, MANAGING EDITOR, MONEY MAGAZINE: Falling in love at mid-life is a complicated affair. But figuring out when to tell the kids, let alone your ex-spouse, is nothing compared to working out the money angle. You're talking about merging two financially mature households, with multiple homes, inheritances, debts, different money styles, the works. No wonder that more than a million couples over age 45 today live together unmarried. The number of seniors choosing this arrangement -- up 70 percent over the past decade.

Now, the decision whether or not to marry is between you, your intended and your conscience. But whatever you choose, you'll have to grapple with these questions. First, will marrying lower your income? You already know you'll lose any alimony you may be collecting. Remember, too, that remarrying before 60 will cost you any rights you have to Social Security and, probably, a pension from a previous marriage.

Second, will marrying raise your taxes? If you combine incomes, you're likely find yourself owing more to Uncle Sam next April. That might be offset by better treatment on capital gains on your home. That's because a married couple can exclude up to half a million dollars of profits on a home, double the break that singles may claim.

Finally, will marrying disinherit your kids? This may be the stickiest issue of all. If you remarry, your spouse, not your kids, gets first dibs on your estate. If you still want to control how they're taken care of once you're gone, you'll need a new estate plan. Then again, whenever you get married, you have to figure that making new plans is just part of the bargain. I'm Eric Schurenberg.