Same-sex couples in states that let them marry would be entitled to joint-and-survivor annuity payments required for spouses with pension plans if the law is overturned, said Todd Solomon, a partner in the employee benefits practice group at McDermott, Will & Emery LLP in Chicago. They would automatically become each other’s beneficiaries on 401(k) accounts unless giving consent for someone else to be listed, he said.
Health-insurance costs also would change for gay couples, Solomon said. They currently can’t receive the tax advantages of being married for employer-provided medical benefits. While they may be able to add their partner to their company’s plan, payments for their spouse generally must be made on an after-tax basis. The employer contribution is also treated as taxable income.
“That’s a pretty harsh tax result,” he said.
Same-sex couples have the right to marry in nine states––New York, Washington, Maryland, Massachusetts, Vermont, Iowa, Connecticut, New Hampshire and Maine––and the District of Columbia.
More Consistency
There probably will be more consistency for same-sex married couples around health-care decisions, parenting rights and immigration rules if the law is overruled, said JPMorgan’s Popovich. It also would be easier for same-sex married couples to title properties jointly and transfer assets in a divorce settlement without triggering taxes, he said.
Same-sex couples who are legally married in their state will be subject to the pros and cons of hundreds of laws if the defense-of-marriage is overturned, said Dennis Ventry, a professor at the University of California Davis School of Law.
“In some circumstances they may be financially worse off,” Ventry said. “That’s not what they’re excited about. They’re excited about being treated like everybody else.”