Save taxes immediately after marriage
When the rings are changed, the party is celebrated and the wedding guests are gone, there are still some formalities that a young couple has to do.
Insurance companies and banks must be notified, landlords and other contractors must be informed, new passports are requested. And of course, the wedding guests are waiting for a few prints of the most beautiful wedding photos.
However, young people should also have sound financial provisions. Because in the worst case, the young couple gives away a lot of money.
Take the check and check it as soon as possible after marriage: Tax benefits secured? Bauspar contracts applied for? Marriage contract set up?
Tip: Whether you have secured benefits with a wedding or not: With a wedding loan ) you get better conditions for two than alone. In some cases, rescheduling may even make sense.
- Change tax code
After a wedding, both spouses must change to another tax class, regardless of any tax benefits, because the tax class I is reserved exclusively for single persons.
In which tax code the spouses change after the marriage, they can decide for themselves. There are two possible variants:
On the one hand the change of both partners into the tax class IV, on the other hand the change of a partner into the tax class III, while the other partner transfers to the tax class V.
Particularly interesting is the second variant (tax class III plus tax class V), because with this you can save taxes by marrying! This variant is known as spouse splitting.
Spouse Splitting: Save Marriage Tax Benefits
With the spouse splitting there’s real marriage tax benefits – but only if one of the two partners earns much more than the other!
By marriage, saving taxes works for spouse splitting because of the fact that the income is aggregated by both partners and then divided into two equal parts (split). These two parts are the basis for the income tax of both partners, which has a positive effect especially when there is a large difference between the income of both spouses.
An example: married couple A earned a total of 80,000 euros. One partner earns 60,000 euros, the other partner 20,000 euros. Couple B also earned a total of 80,000 euros. Here, however, a partner earns the full 80,000 euros while the other partner has no taxable income.
Without spouse splitting, couple A would get an income tax total of € 19,729, and couple B would get a whopping € 25,428.
With the spouse splitting, however, the matter looks different, because here pay both pairs each 18,014 euros! Couple A saves 1,715 euros per year, while couple B gets tax savings of 7,414 euros per year!
Couples with significant differences in income thus save a large part of their income tax on spousal splitting, while for couples with similar or similar incomes tax savings are low or absent.
- Riester pension
Who concludes a Riester contract, gets from the state a subsidy on the deposits – but only who is compulsorily insured in the statutory pension insurance.
However, married partners who are not eligible for this support (for example, the self-employed, 450-euro jobbers without statutory pension insurance and civil servants) can still receive these grants if the other partner is eligible. So only one spouse has to be eligible for a grant, so that both receive the state subsidies.
Although there is no direct advantage of a marriage in building society savings contracts, married couples should nevertheless examine their options here. The bill is quite simple: With two Bauspar contracts you get clearly “more apartment” or “more house” than just one.
In the case of a real estate acquisition, on the one hand, it is much cheaper for borrowers if the equity capital is higher (lower interest rates on loans). At the same time, more favorable terms are once again offered if there are two borrowers for a loan. The risk that the loan can no longer be serviced is lower here – which rewards the bank with lower interest rates.
Tip: Note the housing premium : Married couples are subsidized with 1024 euros per calendar year.
Reading tip: A installment loan is more useful in some cases than a real estate loan.
- life insurance
If there is already a life insurance before the wedding, the spouse should be registered as a beneficiary after the marriage. This avoids later inheritance disputes, especially in the case of previous marriages and children.
Basically, all existing insurance (including household and liability insurance) should be examined after a marriage. Under certain circumstances, significantly cheaper conditions are possible.
- Marriage settlement
Especially at the beginning of a marriage there is harmony and unity – a marriage contract is, however, intended for the bad times. With a marriage contract, married couples regulate different things, especially in the case of divorce.
Above all, three areas are regulated here:
- The matrimonial property – Without marriage contract in the case of a divorce, a so-called gain compensation is carried out. If you do not want that, you can keep it in a marriage contract.
- The Compensation – This is about any pension entitlements that were acquired in the course of the marriage and after marriage may be in question.
- Maintenance after marriage – Anyone who wishes to make deviating agreements to the statutory provisions can do so with a marriage contract.
A marriage contract is only valid if it has been certified by a notary.
Directly after wedding: determine benefits as soon as possible
Whether or not you want to secure benefits through a wedding: ask as soon as possible after marriage what things are important to you and which are not. Because everyday life often returns faster than you think – and postponed duties quickly fall into oblivion.
Read Hint: If you are just married and have just moved in, follow our renovation tips .