
We have spent a great deal of time this semester exploring the experiences of low-income couples, including unmarried mothers and fathers. Many current social policies are based on the assumption that marriage has financial consequences for poor families. But it all seems so complicated: what are the actual financial consequences if unmarried parents decide to get married, or perhaps just cohabit?
One website, administered by the U.S Department of Health and Human Services, Administration for Children and Families, offers some insight into this question. The Marriage Calculator helps policy makers, researchers, and the general public to understand the financial consequences of marriage for individuals earning less than about $40,000 per year. Users can see how taxes and public assistance change when a couple's living arrangement changes from living apart to cohabiting to married.
Open the calculator and "create" information for a hypothetical single mother family and potential spouse. Then specify a set of transfer programs that the couple might use. The calculator will then display the financial impact of getting married; cohabiting that is either reported or not reported to government programs; and continuing to live apart. Write a response to your exercise. What was the most cost-effective solution for your hypothetical couple? Why do you think this is the case?