Living Rich on a Budget: Understanding Common Law Marriage in Pennsylvania

Living “rich” on a budget is the name of the game of a savvy socialite. Although you might live as well as the trust-fund kid down the street, you don’t need to drop thousands to do it. Checking out some great sites we’ve discovered around the internet, The Budget Socialite noted on common law marriages in Pennsylvania and how the subject impacts on budgets.

What is common law marriage and what advantage is it these days? A common law marriage is a relationship permitted or recognized by law where a couple has been living together similar to marriage, according to a state. This state will recognize a common law marriage, with all the benefits and drawbacks of a legal, licensed marriage.

Is there common law marriage in Pennsylvania? Yes… and no, according to the 1969 Pennsylvania Act 155. But first we need to go back a bit into Pennsylvania’s history to explain.

Common law marriages were once recognized in Pennsylvania if one spouse lived at a different home address. This was the next best thing to a divorce. But Common Crier and Spiritualist Reverend Thomas Richards of southwestern Pennsylvania was changing the game. He performed over 800 common law marriages and, if he didn’t like a couple, refused to perform the union.

This was well known to police and fire insurance companies who did not pay claims on homes that burned (or blew up) and, according to records, Reverend Richards “ghost wrote” direct mail campaigns for those who operated in the same manner.

The acting State Attorney General Raymond Shafer had had enough of the problem, and “sunsetted” common law marriages in Pennsylvania. Though Pennsylvania is not the only state annulling common law marriage before 1970, it had one of the largest problems with the practice. A recently divorced or widowed person who remarried without waiting one year would be well on their way to a state prison sentence of five to ten years for bigamy.

Partially to cut out the bigamy problem and partially to give people who believed themselves married (either in the eyes of God or whatever) thanks to Reverend Richards the right to collect a pension or make a will, Commonwealth of Pennsylvania vs. Brian MacKinlay legalized common law marriages in 1967.

Pennsylvania’s 1969 Act 155 only recognizes common law marriages concluded before 1 January 2005. Presently, a common law marriage requires the presence of the Commonwealth law firm that administers the estate once one of the parties dies. It also requires the prior approval of a judge.

How does a common law marriage affect your budget? Here’s the skinny: If you have been living “rich” it could be “whose money is it?” in court. In that case, a divorce can become a painful and financially expensive procedure unless you both agree to an uncontested divorce.

You both can draft a financial agreement (separation) that divides your assets and liabilities. You need a lawyer, of course, to ensure you both land on the right side of the law.

Divorce by common law marriage is completely different from other divorces. You must file a complaint, make discovery, and then go to court to ask the judge to accept the separation agreement. A judge might modify the agreement before or during the hearing.

If you didn’t change your federal tax withholding, you might have to pay back taxes for the year you divorced.

If you die before the divorce is final, your spouse (former or current) inherits everything unless you have a will naming another beneficiary. Be careful who you name in the will as your ex-spouse could contest the will.

The downsides of common law marriage are obvious, but did you know you could save money by creating a common law relationship? If you cannot afford to get married before the government, here’s two ways a comprehensive approach to common law marriage adds to your riches.