Marriage Penalty
Marriage can have some financial disadvantages. It is well known that in some cases, married people pay more taxes than unwed people living together. But the difference is relatively small.
The real problem, especially in "community property" states, is that you double your liability. If one of the spouses goes bankrupt, or has a judgment against him or her, the other spouse is liable too.
In Texas, it used to be that the homestead was sheltered from bankruptcy. No matter what happened, creditors could not take your home (provided you either owned it or kept making regular mortgage payments). That also meant that you could not make home equity loans to finance new cars and other luxuries, which I thought was elementary financial responsibility anyway.
Today, that has changed. Home equity loans are permitted. And the federal government wants to abolish the homestead protection.
If lawmakers wanted to promote marriage, they probably should take a look at the legal liability aspect. We don't want people having to get divorced before they decide to start up a new company or take some other calculated financial risk.
Overall
Overall, marriage is not a bad solution. I am married, and it works for me.
Marriage is a source of stability. Marriage and the resulting family unit are really a good foundation upon which to have and raise kids.
I would not want to give the impression that marriage is boring. I would rather say that in order to keep the passion in a marriage, one has to keep an open mind.
Enrico, 02/22/01
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