What You Need to Know Legal and Financial Benefits of Being Married in California
There are legal and financial benefits that come from being married in California. Legal benefits involve unique rights and opportunities that accompany a spousal status and financial benefits refer to monetary advantages that accompany marriage in the State of California. Here is everything you need to know about the legal and financial benefits of being married in California.
Legal benefits that come from being married in the State of California include being given different rights as the living spouse of a deceased partner. Furthermore, specific circumstances allow advantageous rights to be granted to spouses in regards to parenting and leave of absence from work. Financial benefits that come from being married can be found with respect to taxes, pre-retirement death, health care, and IRA contributions.
Legal Benefits of Being Married in California
There are many legal benefits associated with being married in California. Some of these benefits come from having the status of next of kin, which can result in legal rights being granted in case of an emergency or after the death of a spouse. Additionally, there are advantages that come from both married partners having parentage over a child, and advantages from leave benefits under certain circumstances.
1. Being married grants spouses the status of next of kin.
Next of kin is an individual’s closest living relative, and being married grants each spouse this title for one another. There are many legal benefits to holding this title, such as in the case of an emergency. A spouse has the right to make medical decisions and take part in hospital visits on behalf of their partner with the status of next of kin, particularly in the case that he or she becomes disabled or sick.
2. Being married can provide spouses with legal rights in the case of a partner’s death.
Being married and, thus, having the status of next of kin can grant a spouse legal abilities in regards to the spouse’s death that they might not otherwise have. For example, this title allows a person to have the legal right to sue for wrongful death of a spouse. Additionally, there is the benefit of having the ability to make decisions on whether the deceased significant other will be cremated, as well as decisions on behalf of the location of where the partner will be buried.
3. Being married makes issues regarding parentage less complicated.
Parentage cases involve the court’s decision on who the legal parents of a child are. Being married means that the law assumes both domestic partners are the legal parents of the child. If the couple is unmarried and the mother of the child is pregnant or has given birth, the child does not have a legal father, and establishing parentage becomes necessary. This can lead to many complications – regardless of the biological tie between the father and the baby, the father has no legal rights or responsibilities in caring for the child. Additionally, the child is not entitled to benefits from a parent if they are not their legal parent. This can affect the child in numerous ways, including not having access to family medical records and history, not having the right to inherit money from either parent, and more. Therefore, the advantages of having both parents as the child’s legal parents is a benefit of being married, especially when having children.
Related: How to Establish Parentage in California
4. There are leave benefits associated with being married.
The Family and Medical Leave Act (FMLA) is an act that entitles qualified employees working for covered employers to take a job-protected and unpaid leave if they have specified family and/or medical reasons to do so. These reasons include, but are not limited to serious health conditions of a spouse and any qualifying demand occurring as a consequence of a spouse being a covered military member on “covered active duty.” These rights can not be granted to a significant other that is not a legal spouse, making marriage critical to taking a leave from work.
Financial Benefits of Being Married in California
1. There is a marital tax deduction in the State of California.
A financial benefit of being married in California is that there is no taxation on asset transfers to a spouse. The estate tax marital deduction is unlimited, meaning that this deduction can be used to transfer unlimited assets to a spouse without incurring tax. This rule applies both during the party’s lifetimes, as well as after their deaths. That being said, the spouse must be an American citizen in order to use this unlimited marital deduction.
2. There are pre-retirement death benefits that come from being married in California.
In an unfortunate case of spousal death, being married in California can lead to certain compensations for the remaining party. The spouses or domestic partners must have been legally married or legally registered for a year prior to the injury or development of illness that precipitated death in order to be eligible for monthly pre-retirement death benefits. This can be beneficial for couples that only involve one working partner because if the working partner passes, the other partner can use the monetary compensation to continue to support themselves financially.
3. Health insurance rates can act as a benefit from being married in the State of California
A financial benefit of being married in California includes the fact that family health insurance rates can be applied to married couples. This is useful in the case that one spouse does not have health insurance as a consequence of being unemployed. Moreover, if one of the married parties is able to obtain company-sponsored health insurance, they are able to bring their spouse on to the policy for an additional cost.
4. There are beneficial Individual Retirement Account contributions that can come from being married.
The ceiling in regards to income for most Individual Retirement Account contributions is significantly higher for married couples in the case that one spouse does not receive an income. The spouse of an employed taxpayer has the ability to contribute to an IRA regardless of whether they have a paid job. Thus, married parties that have this dynamic can save a lot of money for retirement all while receiving high tax benefits.
FAQs About Legal and Financial Benefits of Being Married in California
Who qualifies as the next of kin in California?
The next of kin in California refers to individuals who are alive and were closest to a decedent. Marriage grants couples the right to be the next of kin for one another. In the State of California, the next of kin are typically those listed below (in order):
- Surviving spouse or registered domestic partner
- Child/children
- Grandchildren
- Parent or parents
- Sibling/siblings
- Nieces and Nephews
- Grandparents
- Aunts or uncles
- Cousins
- Issue of predeceased spouse
Can a parentage case begin while a mother is pregnant?
A parentage case is also referred to as a paternity case and involves a court order to determine a baby’s legal parents. A parentage case can in fact be opened while the mother is pregnant. This would be done so with the Department of Child Support Services. If the mother opens this case and the person the mother believes to be the child’s biological father denies it, a genetic exam can be ordered by the court post the birth of the baby. That being said, it is important to note that certain labs are only willing to perform genetic tests once a child reaches at least 6 months of age.
Can a spouse become a legal parent to a child through marriage to a legal parent even if they are not biologically related to the child?
A spouse who is not the biological parent of a child can become a legal parent to the child through marriage. The non-birth parent’s name can be added to the child’s birth certificate given that they have received parental rights through a parentage case. Afterward, this can lead to the child being included in the health plan of both parents. If the couple is not married, the non-birth parent has to adopt. Adoption is often preferred even if the couple is married because of the desire to preserve parental rights or the inheritance rights of the child.
Does a spouse still have the ability to receive money if their partner passed away without leaving behind a will?
Yes, a spouse still has the ability to receive money if their partner has passed away without leaving behind a will. This is because a spouse receives automatic rights that allow them to petition to remain in the shared home as well as collect an allowance. Community property is everything that the married couple owns together. The spouse has rights to both their half and their partner’s half of the community property. As for non-community property, the spouse will typically obtain at least half. However, this quantity varies depending on the other family members the deceased party had, including children, parents, siblings, nieces, nephews, and more.
Related: Community Property Laws in California
How do taxes differ by income in married couples?
Married couples pay higher in taxes if they have incomes and jointly earn large sums of money ranging from $622,050 to $1,036,800 in 2020. The 37% bracket is $622,050 for married couples that file their taxes jointly, in comparison to $518,400 for single individuals. Lower combined federal tax liability can be a consequence of a spouse earning a high income while the other spouse has a low income. Thus, being married can potentially lower the combined tax bill based on the parties’ differences in income. However, this is not always the case – therefore, it is important to consult with a lawyer because of the fluctuating nature of tax laws.
Can marrying a U.S. citizen in California result in an easier path to immigration?
Marrying a U.S. citizen in California does not immediately result in citizenship. However, marrying a U.S. citizen or California resident results in an individual becoming an immediate relative or spouse, and therefore a permanent resident. This can result in eligibility for the foreign spouse to get a green card, which in turn can lead to citizenship. Citizenship can be obtained in a variety of ways. It can typically be received three years after acquiring a green card if the couple continues their marriage and lives with their U.S. spouse. Therefore, in a sense, being married in California can act as a legal benefit when it comes to gaining citizenship.
What is alimony and what is the typical duration of one?
Alimony is a legal obligation that is ordered by a court that states a person must give their spouse financial support either during a marriage separation or following a divorce. Following a divorce, the duration of support given by a spouse is typically half the length of a California marriage. This rule applies to marriages that last less than 10 years. An example of this would be if a couple was married for 8 years, in which case the judge would have the authority to add a limit to the alimony for 4 years if there is a necessity to do so. However, many factors play into the duration and amount of support necessary to be received.
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