Isn't That Rich Podcast

So, you’re getting married! This is such an exciting time full of love and bliss as you prepare to enter a lifelong commitment with the person you will soon call your spouse. While planning for the big day seems to be the number one thing on your mind like what dress you’ll wear, what kind of flowers you’ll have, how many people to invite, and what Nespresso machine you’ll add to your registry, there are other things you must consider before and after the wedding.  

It's rather surprising how little attention this topic receives, considering it's undeniably one of the most significant decisions one makes in life. And no, we're not referring to tying the knot; we're talking about the intricate web of financial responsibilities and choices that accompany it. But fear not, as we're here to guide you through each step: from navigating the process of changing your last name to deliberating over whether to establish a joint bank account, and ensuring you comprehend your financial entitlements as a newlywed couple! 

Changing Your Last Name 

There seems to be a common misconception that the whole name change process unfolds post-wedding, but that couldn't be further from the truth. In fact, the journey of changing your last name commences well before you slip into that wedding gown and stroll down the aisle. It's a meticulous process involving numerous documents, each requiring attention in a particular sequence. Let us alleviate some of your burden by streamlining this process for you. With the whirlwind of preparations for the big day, the last thing you need is additional stress! 

Task #1: You Must get Your Marriage License 

Yes, your Marriage License, which will become your Marriage Certificate.  A Marriage License is a legal document that permits a couple to marry and is a prerequisite for legally marrying in most jurisdictions. To obtain a marriage license, couples typically need to apply together at the county clerk’s office in the county of the ceremony and provide certain documentation, such as identification and proof of age. The requirements vary by location, but commonly include filling out an application form, paying a fee, and meeting specific criteria, such as residency requirements or waiting periods. 

Task #2: Turn your Marriage License into a Marriage Certificate 

“You may now kiss the bride!”. Okay, it’s official, you are married! Now it’s time to take that Marriage License and turn it into a certified copy called your Marriage Certificate. To do this, you will take it to the same county clerk's office that gave you your Marriage License. The Marriage Certificate serves as official proof of marriage. It includes details such as the names of the individuals getting married, the date and location of the marriage ceremony, the names of witnesses, and the officiant's signature.    

*Pro tip from Jill – “Get multiple copies of your Marriage Certificate as you will need it when changing your name on other documents such as your driver's license and Social Security Card and those institutions have a tendency to keep your original copy.”* 

Task #3 Update your Social Security Card 

We hope you enjoyed your honeymoon because it’s time to get back to work! It’s time to start changing your name on some super serious stuff like your Social Security Card. Remember that Marriage Certificate you got multiple copies of? Grab one of those copies along with your current driver's license and head to your local Social Security Office. There you will fill out a SS-5 Form which is an application for a new social security card. Your new card should arrive in the mail in 14 days. 

Task #4 Update your Driver’s License 

Once that new Social Security card comes to your mailbox, it’s time to go to the DMV and get your new driver’s license with your new last name. To do this, you need to bring your new SSC, another copy of your Marriage Certificate, and proof of address (water bill, electric bill, etc.). You will leave with a paper copy of your new DL and the official copy will be mailed to you.   

Each of the above tasks is going to cost you some money so we recommend incorporating that dollar dance into your wedding!  

Time to go to the bank! 

It is traditional for newlyweds to combine finances, as they probably pay for most daily expenses together. There are other couples that prefer to keep their finances separate. The good news is that no matter how you want to structure your finances in this new chapter of life, we have options.  

Option 1: Joint Account 

A joint bank account is one owned and operated by two or more individuals. With a joint bank account, all account holders have equal access to the funds in the account and can make transactions, such as deposits, withdrawals, and transfers. To open a joint bank account, both owners of the account will need to be present AKA you and your new love! Here’s what you need to bring: Your new driver’s license (it can be the paper copy if the new one hasn't ccomein the mail yet), your Marriage Certificate, your social security number, and $100.00 to open the account. If you decided to not change your last name, you don’t need to bring a new driver’s license or Marriage Certificate.  

A joint bank account with your spouse is a smart move for couples. It's all about teamwork and transparency. With both partners having equal access to funds, managing expenses becomes a breeze—whether it's paying bills, saving up, or handling emergencies. It fosters open communication and builds trust, which is crucial in any relationship. Plus, it streamlines financial decision-making, making life simpler and more harmonious. 

While we do think joint accounts are a great thing, every rose has its thorn. Since both owners on the account have full access to the funds, either person can do whatever they want with the money. Here’s an example: Husband and Wife have been married for three years and suddenly, the husband wants a divorce. The wife can go to the bank, drain the joint account, and that’s the end of that. Don’t believe us? We’ve seen it happen a time or two at the bank. So, before you join finances with your special someone, make sure you have a clear understanding about how you will handle your money when times get tough. 

Option 2: Separate Accounts 

While this is the lesser common of the two, keeping your bank accounts separate after your nuptials is a possibility. If you simply want to keep your current account but change your last name on it, all you need to bring is that new driver’s license (paper copy is acceptable), and your marriage certificate.  

Having separate bank accounts as a married couple can offer a sense of financial autonomy and independence. Each partner maintains control over their own finances, allowing for individual spending habits and priorities. This can reduce conflicts over money and promote a sense of personal responsibility for financial decisions. Additionally, separate accounts can provide privacy and autonomy in managing personal expenses and investments, allowing each partner to maintain their own financial identity. 

However, separate bank accounts may also lead to challenges in managing shared expenses and financial goals. It can create logistical issues when coordinating bill payments, savings contributions, and budgeting efforts. Additionally, it may hinder transparency and communication about financial matters between partners, potentially leading to misunderstandings or conflicts. Without a unified approach to managing finances, it may be more difficult to work together towards long-term financial stability and shared goals as a couple. 

Owners, Authorized Signers, and Beneficiaries 

Option 1 and Option 2 are popular choices, but perhaps you're seeking greater flexibility in account access. You might wish for your spouse to have deposit and withdrawal rights without the ability to close the account. Alternatively, you may want your spouse to inherit funds upon your death while restricting access to the account during your lifetime. Here are three account titles and their implications. Here are three titles someone can have on a bank account and what each of them mean: 

Owner: As the owner of an account, you have full control over the account, including the ability to deposit, withdraw, transfer, and monitor funds at your discretion. Being the owner of the account gives you direct access to its features and services, such as online banking and customer support, enabling you to conveniently handle your banking affairs. Additionally, as the owner, you have the legal authority to designate authorized signers and beneficiaries, granting them certain privileges or rights over the account as needed.  

Authorized Signer: As an authorized signer on a bank account, you gain specific privileges to conduct transactions on the account, such as depositing, withdrawing, and transferring funds. While you don't have ownership of the account, you have the authority granted by the account owner to perform certain actions on their behalf. This arrangement can be beneficial for joint account holders or individuals who need assistance managing their finances. As an authorized signer, you can help facilitate banking tasks without the need for direct involvement from the account owner. However, it's important to note that authority is limited to the scope defined by the account owner, and an authorized signer can be added or removed from the account at any time. 

Beneficiary: As a beneficiary of a bank account, you stand to receive the funds or assets held in the account upon the death of the account owner without the funds going through probate. Unlike being an authorized signer, you don't have immediate access or control over the account during the account owner's lifetime. Instead, your rights come into effect upon the account owner's passing. However, until that time, you typically have no authority to manage or access the funds in the account.  

As you enter marriage, focus not just on the wedding, but also on practical matters like finances. Whether merging names or deciding on joint accounts, informed choices build a strong financial base. Whether combining finances or keeping them separate, communication and trust are vital. Each couple's financial journey is unique, so find what suits you best. Congratulations on your marriage; may it be filled with love, joy, and financial success!