With retirement approaching, many couples are faced with the challenge of aligning their financial goals without the traditional framework of marriage. In the latest episode of the Money Wisdom podcast, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® address the challenges and planning needs for couples who aren’t married but still want to maintain a shared interest in their financial success.

We like to remind people about the need to take a ‘helicopter view’—a term we use to describe looking at the big picture of financial planning. This approach involves considering all aspects of finances, from investments and insurance to income and expenses, ensuring that both partners are on the same page.

One of the key points discussed is the potential tax benefits of marriage. While married couples often enjoy lower taxes, there are scenarios where remaining unmarried might be financially advantageous, such as when one partner has significant student loan debt or is receiving veteran benefits from a deceased spouse. However, they stress that these situations are exceptions rather than the rule.

But marriage might not be in your plans so how do you stick to the concept of equitable financial contribution. Jake and Nick suggest that couples consider proportional contributions based on income rather than a 50/50 split. This method ensures that both partners contribute fairly according to their financial capabilities, fostering a sense of equal sacrifice and partnership.

You also want to ensure that your investment plans complement one another. Plan for both joint and individual financial independence because it’s a crucial aspect for those who wish to maintain financial security even if the relationship were to end.

The more time you can devote to planning will always give you a better chance to succeed, but two years is ample time to align financial plans and make informed decisions about Social Security, Medicare, and pension options. We encourage anyone to consider both current and future scenarios, weighing the benefits of marriage against the potential for continued cohabitation without legal ties.

Here’s what we discuss in this episode:

0:00 – Intro and question

1:04 – Joint planning

2:37 – Financial benefits of marriage

6:09 – Numbers to address