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Original poster

Why is marital status important?

26 replies

greyinganddecaying · 27/01/2022 11:55

I'm having a review of my finances, pensions etc. On a form to be completed prior to my appointment with a FA they ask for my marital status.

I may be missing something here, but my finances (in this respect) are completely separate to my husband's. It has always been like this as it works better for us.

Is there a reason for them to ask this at the arranging the appointment stage, or is it just old fashioned sexism?

OP posts:
undermilkjug · 27/01/2022 11:57

It can make a difference for inheritance tax and estate planning - it would depend what you're going to see them about.

JurgensCakeBabyJesus · 27/01/2022 11:59

Legally your finances aren't separate from your husband's, if you divorce there are legal entitlements, similarly if one of you dies the legalities differ to an unmarried couple. There can also be different tax implications in some circumstances

Aroundtheworldin80moves · 27/01/2022 11:59

Because legally you are connected.

TrufflesAndToast · 27/01/2022 12:00

Your finances are not separate legally if you’re married. You can keep money in individual bank accounts all you like but they’re marital assets. Your marital status is of enormous significance to a financial advisor! Bit shocked that you’re surprised it’s relevant tbh!

PattyPan · 27/01/2022 12:04

There can be tax advantages to marriage - if one person is a low earner they can transfer some of their personal allowance to the other.

Original poster
greyinganddecaying · 27/01/2022 12:04

I don't think it's relevant because I just want advice about the best way to manage my pensions/savings - it actually has no impact on anything my husband does or doesn't do/think.

These are my investments that will benefit us both when we retire (or would need to be split if we divorced!) - at this point I don't understand why it matters.

OP posts:
Tractordiggerdump · 27/01/2022 12:04

It affects your tax allowances.

Original poster
greyinganddecaying · 27/01/2022 12:04

And sadly no tax benefits for us being married!

OP posts:
PattyPan · 27/01/2022 12:08

If it’s savings you might want to know about options for joint accounts. At a lot of places you can have a joint account and one in your own name so you can benefit from their rates twice.

Aposterhasnoname · 27/01/2022 12:13

You can say your finances are separately till the cows come home, but if you’re married, they are not. Your husband could have a claim on asserts and pensions if you were to divorce.

chesirecat99 · 27/01/2022 12:23

It's important because it is a generic form for all their clients and all their products, and marital status does have legal/tax implications that need to be considered in financial planning. How can the financial advisor give the best advice if he doesn't have all the information?

What do you want them to do? Have a massively complicated form that asks a million questions like tax returns or the census where if you answer yes to X question you got to question Z but if you answer no to X question you go to question Y for every type of product you interested in so they only ask if you are married if it is strictly necessary?

UnexpectedItemInShaggingArea · 27/01/2022 12:49

The best way to manage your savings and investments will be affected by your marital status. Financial planning is a pyramid. Good financial planners will check you have the foundations in place - life insurance etc. before going on to discuss your investment ambitions. Your joint liabilities (like a mortgage) will be considered plus how you would be affected by the death of your H or divorce.

Original poster
greyinganddecaying · 27/01/2022 13:04

But my point is that I want to discuss MY financial planning, regardless of anything my husband has/hasn't in place.

What he has/hasn't got has no bearing on what I want to do about pension contributions etc.

We already have a lot of the usual things in place (life insurance etc) and neither of us want joint savings/investments as we do these things separately.

OP posts:
MajorCarolDanvers · 27/01/2022 13:13

Like it or not that you are part of a joint legal entity ( your marriage ) is a piece of knowledge that your FA needs to be able to give you complete and accurate advice.

IzzyD0ra · 27/01/2022 13:15

Why don't you just ask the FA why they need to know your marital status?

OnceUponAThread · 27/01/2022 13:20

Good financial plan SHOULD involve your marital status though.

You say you're focused on pensions / investments. Here are a few examples.

  • the calculations for the income typically needed in retirement are different for couples than for singletons. And it's not just a straight up you need double the amount either. They need to know to work out what you'll require to live.
  • if either of you have DB pensions in place, they often have very generous widow clauses. This would impact how much you might need for retirement.
  • the two most tax efficient ways of investing are a pension and a S&S ISA. Both of these have annual limits. It makes sense to maximise both people's annual limits before looking at other options. For instance. If you were saving £20k a year into your S&S ISA (maxed) and he could only save £15k a year. You would be better off topping up that £5k a year into his, rather than using a less tax-efficient wrapper. Equally, it makes sense to use up both people's full annual pension allowance. Etc.
  • At the other end of the spectrum - whether you are single or married will impact what benefits you get post-retirement. This can change the picture substantially.
  • If your husband had substantial debts, this would affect your credit rating, and if they were high interest it would be worth considering clearing them before investing.
  • For many people inheritance planning is a significant factor when deciding what savings and investment wrappers to use. Your marital status and plans significantly impact your inheritance tax planning. And no IFA worth his or her salt would do investments and savings planning without considering this.
  • Life Insurance, possibility of divorce, mortgage etc are all important things for an IFA to consider when making financial decisions.

Essentially marriage is a financial contract and impacts your options and needs substantially.

An IFA who didn't ask wouldn't be worth using as they clearly wouldn't understand financial planning.

They need to understand the full picture of yours and you husband's financial status to work out what your needs are and the best way to achieve them.

DaisyMum40 · 27/01/2022 13:30

If you want to discuss investments that benefits you BOTH when you retire then what's the need to be all cloak and dagger about your marital status!! Is it a secret?! It's something that therefore DOES concern your partner?! There's lots of good explanations here why marital status is relevant in financial discussions, regardless of whether you have separate daily finances or not. Continuing to ask the question repeatedly is not going to give you a different answer. A financial advisor cannot advise without all the required information.

VimFuego101 · 27/01/2022 13:34

@MajorCarolDanvers

Like it or not that you are part of a joint legal entity ( your marriage ) is a piece of knowledge that your FA needs to be able to give you complete and accurate advice.
Exactly this.
JackieCollinshasnoauthority · 27/01/2022 13:36

It's really important for financial planning and there are loads of tax benefits associated to being married, even if you don't use them.

Twizbe · 27/01/2022 13:48

As others have said. Your finances aren't separate legally. 'All that I have I share with you' and all that.

They can best advise you if they know whether you're married or not and therefore whether you husband has any entitlement to your assets when you die.

UnexpectedItemInShaggingArea · 27/01/2022 14:12

@greyinganddecaying

But my point is that I want to discuss MY financial planning, regardless of anything my husband has/hasn't in place.

What he has/hasn't got has no bearing on what I want to do about pension contributions etc.

We already have a lot of the usual things in place (life insurance etc) and neither of us want joint savings/investments as we do these things separately.

It's a bit like seeing a doctor without disclosing relevant medical information. They won't be able to give accurate advice. Financial planners have professional standards which require them to make decisions based on client information. Including marital status. Don't make an issue where these isn't one. It's not sexist as they will treat a married man exactly the same.

whenwilliwillibefamous · 27/01/2022 14:14

In addition to what PPs have said, it has implications for capital gains tax planning.

A few years ago a company I had a lot of shares in was unexpectedly subject to a buyout. I transferred (CGT limit) to DH. He then transferred the proceeds back to me. So no CGT was due. Gifts between spouses are exempt.

It's up to you as to whether you make use of these options but a financial advisor absolutely should make sure you have all the options and info laid out for you.

toppkatz · 27/01/2022 14:16

The life expectancy of single people is different to those who are married, so insurers need that information to calculate premiums and so on.

Ploppy1322 · 27/01/2022 14:17

@greyinganddecaying

But my point is that I want to discuss MY financial planning, regardless of anything my husband has/hasn't in place.

What he has/hasn't got has no bearing on what I want to do about pension contributions etc.

We already have a lot of the usual things in place (life insurance etc) and neither of us want joint savings/investments as we do these things separately.

Yes what advice the FA will give YOU for YOUR financial planning depends on your marital status 🙄🙄🙄
Totalwasteofpaper · 27/01/2022 14:21

@greyinganddecaying

And sadly no tax benefits for us being married!
I think it’s fine to ask, because depending on circs…There are definitely benefits.

I use my DHs unused ISA allowance annually and by looking across our earnings we are able to use pensions allowances / draw salary more efficiently /tactically

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