Money and Marriage for LGBTQ+ Couples: A Financial Checklist

While managing money as a pair may be nothing new for many couples, marriage can bring a wholly different financial framework to a relationship. Members of the LGBTQ+ community may also face unique financial considerations, relating to family planning and health care needs.

For LGBTQ+ couples who decide to tie the knot, it’s important to review your financial plans and understand the financial benefits and impacts of marriage. Christopher Canlas, a Senior Vice President and Financial Advisor with Morgan Stanley, seven particular areas of your joint financial lives to consider notes reviewing:

1.   Tax considerations 

Newly married couples are sometimes surprised by the so-called marriage penalty, the tax increase that many couples could face once they combine their incomes and file jointly. Canlas says couples should consider their joint tax liability and explore ways to reduce their taxable income with a tax advisor.

2.   Family planning and college savings

LGBTQ+ couples planning to have children do face additional expenses, such as paying for fertility specialists, sperm or egg donors, surrogacy, or adoption, which can easily cost several thousands of dollars.¹ Canlas says saving at least three to four years before they plan to have a child. Given a shorter time horizon between beginning to save for future children and when funds need to be spent, he recommends considering savings options that are on the more conservative side, like a high-yield savings account.

“For couples that have the means, it's important to create a plan and mechanism for saving that money,” he says. Working with an inclusive LGBTQ+ Financial Advisor can help guide you based on your time horizon and goals. Once kids are in the picture, couples can take advantage of 529 plans, which offer a tax-efficient tool for saving for education, Canlas says.

3.   Health care 

More than 1 in 3 LGBTQ+ adults postponed or avoided medical care due to disrespect or discrimination by health care providers, according to a 2024 study by the Center for American Progress.²

Married couples are generally eligible for health insurance via their spouse's workplace plans, and it’s important to review each partner’s benefits to see which plans may be right for you, given specific needs like fertility and hormonal therapy. Consider which health plan includes your preferred doctors and insurance network.

When it comes to children and health care, Canlas says that although marriage equality is still the law of the land federally, there exists issues of protecting parental rights of children conceived via surrogacy in health care settings. For example, even though a child may be born via surrogacy to a same-sex couple, and that same-sex couple is listed as both parents on a child’s birth certificate, a birth certificate does not establish parental rights, and a hospital may refuse to take health care directives from a non-biological parent listed on the birth certificate. Consider consulting with a lawyer for additional legal planning.

4.   Insurance

Having insurance can provide financial protection for your family in the event of illness, accident or death. And sometimes, your employer-based insurance policies may not offer enough coverage for you, your spouse and your children. If that’s the case, consider looking into supplemental insurance policies such as term or whole life, disability and long-term care.

5.   Retirement savings

A Financial Advisor can help you determine how much you'll need to save to help sustain your desired lifestyle in your retirement. You also want to be aware of what retirement benefits you're legally entitled to as a spouse. If you already have retirement accounts, such as 401(k)s or IRAs, then review your beneficiary designations to make sure they reflect your current intention. Take note: If you've named a non-spouse beneficiary, like a parent, on your retirement accounts, you may need written consent from your spouse for it to be valid.

6.   Social Security benefits

As a married couple, you also gain access to spousal and survivor Social Security benefits. At full retirement age, spouses can receive the benefit to which they’re entitled as a result of their work history or a benefit equaling 50% of their spouse’s full retirement benefit, whichever is greater.  

7.   Estate planning and gifting

Marriage equality has made estate planning for LGBTQ+ couples much easier by providing spouses more benefits under federal regulations. For example, married couples can pass an unlimited amount of assets to their spouse after death without incurring federal estate taxes. Spouses can also transfer property and assets to each other without having to pay income or gift taxes.

Working with an inclusive LGBTQ+ Financial Advisor 

For partners who do decide to marry, reviewing your joint financial plan can help ensure that you take advantage of the many benefits and opportunities available. “If you're not utilizing professional advice, then there could be ways to improve your financial plan that you don't know about yet,” Canlas says.

Working with your Morgan Stanley Financial Advisor can help you identify your financial goals as a couple and build a customized plan so you and your partner can achieve them. Financial Advisors with the Accredited Domestic Partnership Advisor® designation can provide special insight into benefits that LGBTQ+ couples may want to know about. Lastly, should federal laws change regarding marriage equality, Canlas says couples should review the legal and financial implications with your attorney and Financial Advisor.