Will New York Same-Sex Marriage be a Bonanza for Family Law Attorneys?

As you’ve probably heard, the state of New York has legalized same-sex marriage, and the law will officially go into effect in late July 2011. New York is the sixth state, and by far the largest, to legalize same-sex marriage. In doing so, it more than doubled the number of Americans living in states that recognize such unions.

Not surprisingly, gay-rights advocates are celebrating this major victory for their cause, hoping that it will breathe new life into their movement. With a very large state legalizing same-sex marriage, with one house of the state legislature being controlled by Republicans, and the state as a whole being more politically moderate than most of the other states that have legalized same-sex marriage, advocates for marriage equality certainly have cause for optimism.

However, there’s another group who might be popping champagne corks because of this legislation: New York family law attorneys.  First of all, modern marriage is a bit more complicated than it used to be. Some people, especially professionals, tend to get married a little later in life (late 20s or early 30s, for example). Secondly, in today’s economy, it’s extremely common for both spouses to have careers.

This means that it’s normal for both spouses to go into a marriage with a significant amount of assets. This means that prenuptial agreements are becoming far more acceptable than they were even a few years ago. And, as one might imagine, a family lawyer is essential in negotiating and drafting these agreements. With perhaps tens of thousands of same-sex couples getting married in New York over the next few years, family law attorneys in New York are probably going to have their work cut out for them.

Prenuptial agreements usually lay out how property is to be distributed in the event that a marriage ends in divorce. They are often made when one spouse goes into a marriage with something that means a great deal to them, such as a business, and wants to ensure that they will be able to keep full ownership and control of it, and its profits, in the event that the marriage fails.

And, with marriage, comes divorce.  With thousands of people getting married who previously couldn’t, at least some of those marriages are going to end in divorce. This is, of course, not an indictment of same-sex marriage. It’s simply a fact of life that not every marriage works out. In any case, same-sex couples who get divorced will face all the same legal issues that opposite-sex couples face, and possibly more.

This is because the federal government does not recognize same-sex marriage, and there are many federal rights and benefits that come with marriage, some of which are affected by divorce. They include the right to jointly file federal tax returns, spousal benefits for federal employees, military spousal benefits, and many others. Because of this conflict with federal law, same-sex marriage (in the states where it’s legal) is significantly more complicated than “traditional” marriage.

Of course, I don’t want to sound like a cynical legal professional, viewing this historic civil rights victory as merely an opportunity for lawyers to make more money. However, it does illustrate the connection between increased freedom, and increased economic opportunity and vitality, for everyone.

Since laws barring discrimination in employment based on race and gender went into effect, historic wealth inequality between whites and minorities, and between men and women, has narrowed significantly. Of course, we still have a long way to go on that front, but we’ve made a lot of progress over the last few decades.

Also, same-sex marriage is likely to improve the economy of New York in other ways: New York does not have strict residency requirements for marriage. This means that same-sex couples from all over the country may end up traveling to New York in order to get married.

With most states facing serious budget deficits, any new source of revenue will likely be welcome. Same-sex couples getting married in New York, both from within and outside the state, will bring administrative fees to the state government, and the weddings themselves will likely generate a great deal of sales tax revenue, because of all the goods and services that will have to be purchased in the state.

Indeed, every state that has legalized same-sex marriage has seen an increase in government revenue, even if only a small one.

Of course, I don’t think that that’s the primary justification for legalizing same-sex marriage. The primary reason is that it’s the right thing to do, in the name of freedom and equality. However, perhaps at least some might be persuaded by the economic facts, especially in these difficult economic times. And if that changes them from a vote against to a vote for same-sex marriage, so much the better.