It’s a brave new world for some couples

The U.S. Supreme Court’s recognition of a right to marry for same-sex couples means extension of some key benefits – which includes management of finances – to people previously denied.

But financial advisors, accountants, tax professionals, bankers and attorneys say the change means those couples need to take a close look at how their portfolios and other financial matters are currently arranged, and determine whether they need to explore new options.

An initial local rush to parish clerks offices – small but palpable – included couples who have been together for years, even decades. Uncounted others, already married in other states but whose unions must now be recognized in Louisiana, should also look carefully at their financial set-ups.

Doug Boudreaux, a Houma accountant who prepares taxes, is among professionals who say the financial effects of the change need careful consideration.

“The problem we had as preparers is that state law determined someone’s marital status. If someone got married in Iowa they could file a joint return in Iowa. But Louisiana didn’t acknowledge it,” Boudreaux explained. “Now the Supreme Court says Louisiana must accept it and they will now allow married filing jointly.”

That status will allow a greater benefit to most married couples, but there are exceptions. And it’s one reason why, professionals said, same-sex couples not already married should give an extra-long look at things they have not had to consider before.

“People must remember that Louisiana is a community property state, so you have to look at community property rules. It goes the same for income,” Boudreaux said.

Among cases where married filing jointly might not offer an advantage are those where one spouse may have a large number of medical deductions.

Local financial planners cited strict rules about what they can publicly discuss, but generally agreed that portfolio planning may require second looks for options that same-sex couples now free to marry didn’t have before.

“In the financial planning community it is opening up a whole new area that will have to be explored,” one planner said, asking that she and her company not be identified.

“Whether there is a legal document there or not if you want to get a life with someone theoretically you will be together forever and you want to make sure you are on the same page with financial matters,” said another.

Inability to marry, investors and other professionals acknowledge, have meant the creation of sometimes elaborate financial and legal schemes to protect assets, prepare successions and purchase or own property jointly. The use of a joint tenant with right of survivorship status in a property purchase was needed before the court’s decision by many same-sex couples. Professional advisors are still examining what if anything needs to change for some clients.

The impact on the insurance industry and policies held by same-sex couples remains unresolved and company representatives say they are still trying to determine how best to serve same-sex married couples in Louisiana and other states where change is now the law.

“We don’t have clarification,” said Eddie Olivier of AFLAC in Houma. “Now that same-sex couples are allowed to we are waiting to find out how and if we can cover them.“

Olivier said that clarification should come this week.

One of the changes may be observed in premiums on life insurance policies. Policies purchased together as a married couple have premiums based on actuarial tables predicting life expectancies that differ for men and women.

In most cases the premiums for women are a little lower and for men a little more.

The necessity of couples navigating through financial planning, investment advisors said, remains paramount for all, regardless of gender makeup.

“It’s important whether you are married or in any other relationship,” one advisor said. “Finances are still one of the number one reasons why marriages break up and it is important to sit down with someone.”