Planning Beginner: Financial Aspects of Getting Married

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What priority does a married person get when his or her spouse needs a conservator to make financial decisions in the event of incapacity?

First priority

Second priority

Priority is determined by a court

Last priority

First priority. The advantage of being married extends to conservatorship.

The "marriage penalty" refers to _______.

Filing taxes jointly and ending up in a higher tax bracket

Special tax rates for married people

Both of the above

Filing taxes jointly and ending up in a higher tax bracket. This happened in the past because of the mismatch of tax brackets, but the 2018 tax law changed them such that the penalty occurs only in the two top brackets (most taxpayers are not in these brackets).

Unmarried couples are not legally entitled to equitable division of property if they break up. An exception to this is if they _______.

Have created a contract just for that purpose

Have a child

Go on public assistance

Have created a contract just for that purpose. Having drawn up a contract for equitable division of property can be legally binding.

When it comes to marriage, which of the following are generally considered to be financial responsibilities of marriage?

Liability for certain kinds of family expenses

Sharing income and property acquired during marriage

Financial responsibility for your spouse in the case of a divorce

All of the above

All of the above. Each of these financial responsibilities is commonly expected of those who marry. Financial support for any children during the marriage is also expected.

If you are married and your spouse leaves you his or her estate upon death, how much of that estate will be affected by the estate tax?

All of it

Some of it

Half of it

None of it

None of it. By federal law, estates given to a spouse are exempt from estate taxes.