Same sex couples have a challenging time when it comes to tackling financial matters in the States, especially since the law is geared towards married couples being a man and a women. Same sex couples have to rely on the laws laid down by each individual state.

Couples with children need to be especially careful with their financial planning. This is to ensure that any child or children a couple have will be looked after financially, should one or both of the parents die or become disabled.

The laws are different throughout each state, so it is important to get professional help. The Wells Fargo banking group have some useful advice for same sex couples.

The main points to organise are:

Second Parent Adoption

The mother is always the legal parent, but when a child has co-parents the law varies. It is important to know whether or not your state allows second parent adoption. If it does, it means that your partner has the same rights and responsibilities to a child that biologically isn’t your own. If Second Parent Adoption isn’t recognised then a Co-Parent Agreement should be drawn up. This agreement shows that both partners agree that they hold responsibility for a child’s welfare, which include matters such as medical attention, education and financial support.

Same Sex Couples with children and Finances

Domestic Partner Agreement

If you live in a state that does not accept same sex marriages then you can apply for a Domestic Partner Agreement. This will mean that you have some legal entitlements such as being named on a family health cover policy, visitation rights in hospital and right to leave from work if a partner is sick and you need to look after your child. However, the rights and entitlements vary from state to state.


As a same sex couple you may be entitled to benefit from your partner’s work pension, but again this depends where you live. Even if you presently live in a state that allows pensions to pass to partners in same sex marriages, look to the future. You may end moving state and in an area where the law is different.


According to the law your estate goes to a blood relative when you die. If you aren’t legally married or co-habiting you need to make a Will. It is especially important if you have children. Making a Will ensures that they will be financially secure in the event of your death, or your partners.

Power of Attorney

A Power of Attorney is another legal safeguard to ensure that your partner can make decisions in the event of you becoming incapacitated. Both partners should have a separate Power of Attorney, naming each other.

Life Insurance

Although many states in America now enable same sex couples to claim for federal benefits, but as the law is still fairly new, many states have not put the laws into place to enable couples to benefit. If you have a child or children, a private pension plan is recommended.

If you want to read more about financial planning for same sex couples Prudential Financial Planning have a useful online brochure, which tells you all about the regulations with lots of advice about financial planning.