Supreme Court Legalizes Same-sex Marriages Nationwide
Following is a news flash: the Supreme Court Legalizes Same-sex Marriages Nationwide. I encourage you to read this short report. Afterwards I will make some comments.
Steve Richardson, CPA
Five-Minute Tax Briefing
No. 2015-13
Item for Monday, June 29, 2015
Supreme Court Legalizes Same-sex Marriages Nationwide: The U.S. Supreme Court held, in a landmark decision, that the Constitution requires a state to license marriages between same-sex couples. This ruling to legalize same-sex marriage in all 50 states has far-reaching consequences, including a number of important tax issues. Same-sex couples who are married in any state will now be able to file joint state tax returns, inherit property more easily, and receive Social Security and veterans’ spousal benefits. For federal tax purposes, legally married gay couples have been able to file joint income tax returns, elect to split gifts for gift tax, and claim the marital deduction for estate tax since the Supreme Court’s 2013 ruling in Windsor. However, some states required same-sex couples to file separate state income tax returns, regardless of whether they were legally married in another state. [Editor’s Note: Same-sex married couples should be able to amend their returns and file jointly to claim a refund (if entitled to one) for tax years that are still open.] Other areas likely to be impacted by this ruling include health and medical benefits. Obergefell v. Hodges, 115 AFTR 2d 2015-XXXX (Sup. Ct. 2015).
Comments: How will this affect my clients and friends?
First I want to point out a simple fact: this is the law of the land. You may agree with the ruling with a whole heart or you may think is a travesty but this is a central fact: Same-sex Marriage is now a constitutionally protected right of citizens.
- As such it is a fact we must learn to live with.
- That is the purpose of this letter; how do we live with this new reality.
It’s not all good news and it’s not all bad news. When the eight-hundred pound gorilla (also known as the United States Supreme Court) makes a ruling it is always a mixed bag; rarely, if ever, does a Supreme Court ruling produce a clear winner and a clear loser.
For the Gay and Lesbian Community, this is as near a complete victory as they could have hoped for but there was a distant mirage that is now a certain reality. Family court has a new group of constituents. The rules that apply to marriages now apply to Same-sex Marriage couples. That means: alimony, property settlements and all of the many other things that are the domain of family court now apply to all married couples be they heterosexual or not. As a part of my job, I’m in family court on a routine basis – it is not a place you want to be. This is a negative.
There are other aspects of this ruling that have a negative potential. I’m not a legal scholar and am therefore unable to address these potentials in a meaningful way.
For the Gay and Lesbian Community, there are some clear wins. Things like tax planning, estate planning, insurance planning, pension and retirement planning and family financial planning are going to be much easier to accomplish. This is important.
I’ve serviced Gay and Lesbian clients for over 40-years. Without this court ruling I can and have accomplished good results in each of these important financial areas – but – it wasn’t easy. Now; it’s much easier to do.
As a result, more people will have better tax and other financial planning. More people we have improved economic stability. This is a good thing.
When a constituent community enjoys an improving economic reality, the entire economy will reap the benefits. This is not hypothetical; this ruling is good for the economy; especially if you are a lawyer, CPA or financial planner.
But! But, there is a significant constituent of citizens who are deeply offended.
I advise caution here. I will deal with the religious and church issues in a bit but first, for private citizens – be cautious!
Be you an employee or entrepreneur your customers are not Black or White, nor are they Gay or Heterosexual; what they are is green dollars. In business purchasing power counts. Business is business and do not get fired from your job or lose your business in an ineffectual protest over an issue that will not change in your lifetime. Be kind, be gracious, and be at all times ethical in all your business dealings with whomever. That is just good common sense.
Religious and Church Issues:
Contrary to popular perception, the U.S. Supreme Court was not anti-religious or draconian in this ruling; quite the contrary. Church and ministers cannot be compelled to provide sacraments, ordinances or other sacerdotal services to anyone whose faith or lifestyle is contrary to their convictions. The First Amendment was not over turned. I state this as a clear fact: Churches and Clergy cannot be compelled to provide marriage services where they object for any reason.
What actions should church take?
Here again I advise caution. Frankly, you really do not need to do anything. If, however, you feel compelled to take some action I suggest that you modify your church by-laws or constitution to simple as a statement such as this:
“Our Church of the True Faith” cannot be compelled to provide sacraments, ordinances or other sacerdotal services to anyone whose faith or lifestyle is contrary to the convictions of this Church.
Notice that I did not even mention the Same-sex Marriage issue. Don’t. It’s not necessary and, if you do, you create an increased potential for litigation that is avoidable.
Matthew 5:25 – Come to terms quickly with your accuser while you are going with him to court, lest your accuser hand you over to the judge…
I will tell you this plainly and simply, if you are sued for refusing to administer a same-sex marriage based on religious convictions you will win. But, trust me on this, you do not want to be sued! Ever!
So, again, I advise caution.
Sincerely,
Steve Richardson, CPA