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Saturday, June 25, 2011

Marriage and Taxes

I was approached yesterday by a friend who's been living with his girlfriend for 10 years.  They have two kids together, and they're finally considering marriage.  However, the only thing stopping them is... taxes.

According to my friend and the research he claims to have done, his and her tax liability will increase by over $10,000 per year if they simply tie the knot.  He is basically asking if I'll preside over a ceremony without a marriage license.  While I ponder that, I need to hear from those of you with any experience in tax law to determine the validity of my friend's fear.  Does the government truly punish marriage like this?  If so, from a financial standpoint alone, I understand why my friends want to remain as they are.

Help me out, please.  I don't know the exact annual salaries for this couple, but I'm gonna venture a guess that both individuals make around $50,000 per year each.

And as another sub-topic: To my fellow pastor friends, have you ever conducted a license-less ceremony?  My initial thought is that I wouldn't do it, but then I need to explore what the Bible has to say about licenses, and I don't believe I'll find much.  Cynically, I think, "What's the point?" But then again, one of my answers to the quip, "We don't need a piece of paper to tell us we're committed," is that it's not about the license - it's about verbally committing vows in front of God, family, and friends - with the intent to never break them.

Anyway, let's discuss this!

2 comments:

  1. Hey, Kyle. Chris Torgrimsson here. Anyway, I am not well versed in Arizona law, but the Feds regard common-law marriage like any other marriage and the tax hit is as mentioned. If there is no license and they file separate returns, I cannot see any issue. You know my views on marriage, it is a wonderful institution but like you said, if you are committed to your partner, it is nothing more than a piece of paper.

    I am having a fun issue going on right now, both girls want us to adopt them. Yes, their parents are still alive and they are both over 21, but it would mostly be symbolic and they want our name. I love the girls, but our religious advisor cautioned us on this because it does not fit with his views of family. I would love some input from you, if you have any thoughts on this.

    Whoops, just contact me on the BBWC, this is really for the eyes of Mary and myself. I would like to not get the girls hopes up just in case. The girls and Drake like to hijack my e-mails. Rotten tech-savvy kids.

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  2. Thanks, Torg. That's what I thought too - if they filed separately, I didn't think anything changed from single to married life.

    I'll catch you on the BBWC.

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