Can getting married actually save you money?

If you're thinking about getting married, hopefully it's because you're so in love with your partner that you can't wait to stand up in front of all your friends and relatives and yell 'I do!'.

Trouble is, the average Brit is spending a panic-inducing £31,974 on their wedding. That might be one of the reasons that fewer people are walking down the aisle than ever before. 50.5% of the population was married in 2018, compared to 54.8% in 2002. More people are choosing just to live together instead, especially younger couples: up from 6.8% in 2002 to 10.4% in 2018.

So, whether you're tempted to put it off because of the big price tag or you're planning your wedding and all you can think about is the money flying out your pocket, stop worrying. Here's some good news about how getting hitched can actually give your finances a boost.

A tax break that could fund your next mini break

There are a few juicy tax breaks available to married couples in the UK. Firstly, the marriage allowance, designed for couples where one is a non-tax payer.

It means the lower earner can transfer any unused tax-free Personal Allowance to their higher earning partner, this reduces their tax by up to £250 in the tax year (6 April to 5 April the next year).

Cheaper car insurance

Surprise! Another nice perk of getting married is that you could get a better deal on your car insurance. Insurers say married people make fewer claims, while single people are higher risk so they pay higher premiums.

Get ready for the logic - statistically, singletons have more accidents because there's a greater chance they'll be out on the roads at night when more crashes happen.

Avoid expensive acronyms

You're just about to start your lives together so the possibility of one of you dying isn't what you want to think about right now. But, please just make a will.

If you're not married and your partner dies without one, you won't automatically inherit their pension, other savings, or property, unless you jointly own it.

Being married or in a civil partnership means that, if one of you dies, the other can inherit their assets free of Inheritance Tax (IHT). Married couples and civil partners can also use both their annual allowances to gift or sell assets to each other without triggering Capital Gains Tax (CGT).

A stronger credit file?

Actually, this one's a bit of a red herring. While you can have joint financial accounts whether you are married or not, choosing to do so doesn't necessarily boost both of your credit ratings, contrary to popular belief, so it won't make it easier to get financial products or access the best rate.

Getting married doesn't automatically link you financially, but taking out a credit card, bank account, loan or mortgage together does, and this shows up on your credit record. Make sure you really trust your partner and you're both sure you have the same attitude to managing money before linking your finances in this way.

Frugal savers and carefree spendthrifts can still be a marital match made in heaven, but they should probably think about keeping their finances separate to preserve romantic harmony.