Wedding season typically lies in the late summer and early fall, according to the wedding website TheKnot.com. This year, the peak maybe even more noticeable due to the delayed demand for weddings caused by the COVID-19 pandemic.

Last year, because of the restrictions and health concerns on in-person events across the country, many people postponed their weddings — or at least their receptions. Now, as vaccination rates are rising and restrictions are lifting, the wedding industry expects to see a boost in its revenue. Here’s some financial advice for couples who are getting married in 2021.

How Much Does It Cost to Get Married? 

The average cost to tie the knot — including the reception and reception but excluding the honeymoon and engagement ring — was about $19,000 in 2020, a steep difference from the average of $28,000 in 2019, according to The Real Weddings Study 2020 [COVID-19 Edition]. The pandemic reduced the average cost because the average number of guests has fallen dramatically in the last year.

However, the average cost of each guest increased from $214 in 2019 to $244 in 2020. This change is partly because of spending on safety and health items, such as masks and hand sanitizer for guests. In addition, many reception costs — such as wedding attire, flowers, and venue rentals — are fixed. Dividing fixed expenses over a headcount that is smaller increases the average cost per guest.

The drop in average wedding cost seems to be only temporary. The average cost for a wedding reception in 2021 is expected to be around $22,500. This is similar to the average cost for a reception in 2019 ($23,000).

Costs vary by geographical location, however. The most expensive state to get married in is New Jersey, where couples spend an average of $53,400 for a reception and wedding. The least expensive state is Utah, where they have an average cost of only $19,700.

Recent Survey

Approximately 40% of engaged couples who had a set wedding date in 2020 prior to the pandemic followed through with both their reception and ceremony in 2020, according to The Real Weddings Study 2020 [COVID-19 Edition], a recent survey of more than 7,600 couples from TheKnot.com. Fewer couples (7%) still got married but canceled their receptions.

Many couples who followed through with their receptions scaled them down and focused more on the safety and health of their guests than in previous years. Average guest counts were down by roughly 50% (66 guests in 2020 vs. 131 guests in 2019). And, compared to 2019, couples favored hometown weddings over destination weddings.

Some couples who simplified their weddings are planning a “sequel event” or first-year anniversary celebration with family and friends in 2021. So, the party might not be over for some newlyweds.

Plus, nearly half of the couples (47%) who planned a wedding prior to the pandemic moved their reception back to a later date, with 32% still legally tieing the knot in 2020 while 15% decided to postpone their entire wedding altogether. The majority of those who delayed all or part of their wedding festivities now have their eyes on a date in 2021. 3 percent of engaged couples remain uncertain about their future wedding plans.

Housekeeping Chores

Whether you’re planning a wedding celebration now or in the future, it is important to remember administrative tasks that come with saying, “I do.” Many of these tasks relate to name changes of which some people choose to use a hyphenated (or blended) version of both last names or take on their spouse’s last name.

The tradition of changing names is less common. Many newlyweds, including some same-sex married couples and couples over 35 with established careers, are sticking with their original surnames.

If you do decide to change your name, here’s the protocol for after you are legally married:

Visit Your Local Social Security Office. Notify your local Social Security Administration (SSA) after you’re married to protect credit ratings and Social Security benefits. To get a new Social Security card, you need to complete an application (available online) and provide proof of your identification with your old and new names, such as a driver’s license and your marriage certificate. If you were born outside the United States, you will also need proof that you are a citizen or legally in the country.

You can apply by mail or by visiting your local Social Security office. But most people apply in person, due to the requirement of submitting original documentation or copies certified by the custodian of the record. The SSA does not accept notarized copies, photocopies, or your old Social Security card as evidence of identity.

Update IRS Records. The SSA informs the IRS about any name changes, and the tax agency’s records are usually updated about 10 days later. If you do not notify the SSA and file a tax return with your new married name, IRS computers won’t be able to match your new name with your Social Security number.

Spread the Word. Once your name is officially changed with the SSA, you will need to share the news with everyone else. In addition to filling out the proper forms with your employer’s human resources department, here are some additional records to update:

  • Driver’s license,
  • Passport,
  • State and local tax records,
  • Voter registration,
  • Vehicle registration,
  • Property titles,
  • Utility records, such as phone, cell phone, electric, gas, water, and trash removal,
  • Bank, credit card, and brokerage accounts,
  • Pension and retirement plans,
  • Insurance policies and beneficiaries,
  • Medical, dental, and pharmacy records, and
  • Email addresses and social media accounts.

When you return to work after the honeymoon, consult your company’s human resources department to evaluate how your change in marital status affects your benefits. You might save money by eliminating duplicate life insurance coverage or health care, for example. Don’t forget to change any beneficiary designations on insurance policies and retirement plans.

Combining Your Finances

Financial matters are the leading cause of conflict for married couples, especially when you are trying to blend two established households into one. So, it’s important to consult with your us and legal advisors to get a handle on your tax, financial, and estate planning strategies as a joint household.

Newlyweds need to discuss such issues as how much debt and savings each partner brings to the table. Each partner’s credit rating should be disclosed to identify potential problems. (Ideally, these issues should be addressed before you get married.)

You will also need to decide whether or not to combine your checking, savings, and credit card accounts. Even if you decide to maintain separate accounts, it is often helpful to have at least one joint bank account to pay for shared expenses, such as the costs of a car or mortgage, rent, childcare, and household expenses.

A joint account can also help avoid problems in the case of one spouse dying. When a spouse or common-law partner dies and they have a separate account, the survivor will be excluded from their partner’s account if the estate goes to probate. That could take months or even years.

In addition, CPAs can often help newlyweds establish joint financial goals, including contingency plans and annual budgets, and in the case of a spouse’s loss of job or disability. Once your short-term goals are good to go, look to the future: What age do you expect to retire? Where would you like to live or travel when you retire? What activities — such as hobbies, part-time work, and volunteering — do you envision participating in during your golden years? Are your current in your retirement account savings and are your contributions sufficient to achieve those goals?

Managing Legal Matters

From a legal perspective, you’ll need to update deeds, power of attorney, and will documents. Your attorney can also discuss a full array of estate planning tools, such as various trusts, that might be relevant now that you’re married.

People who have been previously married bring additional financial issues to the table, especially if they have children from a previous marriage or are required to pay alimony, child support, or insurance premiums under the terms of a divorce settlement agreement. Meet with your attorney to address these issues when blending your finances:

  • Do you have business debts or obligations with your former spouse?
  • Are you required to keep a former spouse on your insurance?
  • Does a former spouse have a claim on your employer-sponsored retirement?
  • If you’re entitled to assets from a former spouse, for example, an inheritance or other financial interest, will your remarriage end that entitlement?
  • Is your former spouse still a beneficiary in your will?

We Can Help

Whether it’s your first time down the aisle — or your fifth — marriage is a celebration. Don’t let administrative chores prevent you from living happily ever after. Us and your legal advisors can help address critical housekeeping chores head-on.

Hoberman & Lesser’s NYC accountants serve a broad cross-section of businesses, ranging from publicly held companies, to private sector businesses, to individual entrepreneurs throughout New York, New Jersey, and Connecticut, and across the United States. To schedule a complimentary and confidential consultation with a member of our team, please contact us.