Top Five Financial Reasons For Delaying Marriage

It’s become rather obvious that marriage has lost some of its luster in America. According to 2010 census data, the number of adults aged 18 and older that are married has dropped from 72 percent in 1960 to just 51 percent in 2010.

And not only are people opting out, but those who do marry are waiting longer before they walk down the aisle. According to a Pew Research Center study released in December, the average age at first marriage for both men and women has risen significantly, from the early 20s in 1960 to upwards of 27 for both sexes (higher for men) in 2011. 

Why the delay? Finances often play a significant role in the decision to wed or wait. Presumably, money has always had some influence in timing of matrimony for younger couples. The surprising news is that all age groups face financial roadblocks that may have implications for a marital commitment. Following are five financial circumstances that may influence the timing of when people decide to tie the knot. 

1) The debt downer. Taking time to improve a personal balance sheet is a good reason to wait before getting married. If the bride or groom is saddled with hefty college loans or maxed-out credit cards, the “honeymoon phase” may be over in a hurry. For example, an individual who has a strong credit history might also be less willing to commit financially to a spouse with a recent bankruptcy on the books. 

2) Job insecurity. Unemployment rates are still high, which can create anxiety about exchanging vows. It’s hard to plan for the future when the here-and-now is unpredictable. Lack of a regular paycheck, or the likelihood of job loss, can affect the ability to make other commitments that often go hand-in-hand with marriage, such as signing a lease on an apartment, purchasing a first home or starting a family. 

3) Health insurance quandaries. Health insurance is costly, but increasingly critical to have in order to avoid financial turmoil in the event of a catastrophic illness. It’s a factor that needs to be addressed when two households become one. Fortunately, with the new healthcare reforms, adults 25 and under can still be covered under their parent’s plans — even if they are otherwise independent (and married). In fact, health insurance may provide an incentive to get married, when one party has a good health insurance plan that becomes available to the other only through marriage. 

4) Child and spousal support. A marriage can render alimony payments null or void and may affect other financial agreements for a previously single parent such as child support. According to a University of Michigan study, a divorced parent who remarries may see a substantial drop in child support payments. That’s enough to give some pause before taking a leap into marriage. 

5) Sticker shock. The cost of a wedding can push marriage plans far into the future. Even a barebones wedding can easily cost $5,000, and it’s not unusual for the tab reach $25,000 or more. Costs add up quickly when you consider the expense of the rings, followed by invitations, the wedding gown, tuxedos, photography, plus the reception and all it entails. If the bride and groom have their hearts set on a long guest list and pricey affair — and mom and dad aren’t prepared to chip in —it may take time to accumulate the funds for the wedding. 

The other side of the coin

While many of the reasons to delay marriage have merit, following through with it isn’t all bad for our pocketbooks. The Pew Research Center also reported that the household income of married folks is significantly higher than their unmarried counterparts. That’s true for both college-educated and non-college educated couples. This may in part be a result of the federal tax benefits that apply to married couples filing jointly, but it’s quite possibly more than that. Couples who enter into the legal contract of marriage may take the step because they feel that it will lead to more stable circumstances that will contribute to their income-earning potential. They also may have more incentive to pool their resources and therefore may do so more efficiently, helping them to acquire a better financial position. 

Say ‘I Do” to financial planning

If you’re thinking about marriage, include financial planning as a couple on your list of to-dos. Have a conversation about what kinds of things each of you plans to do, and what your financial situation is like. Since money is often a leading cause of discord between couples, it’s wise to pay special attention to the role it may play in your relationship. A financial advisor can help you and your future spouse explore your individual attitudes about money and develop a plan that reflects your shared goals, so you are better able to make the most of your lives together.

Rob Davis lives in University Place with his wife Lorri and sons Wesley and Parker.  With over 34 years of experience, he is a Certified Financial Planner practitioner and is licensed/registered to do business with U.S. residents in the states of Washington and Idaho. 

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.