Before a couple in Pennsylvania decides that a strategic divorce is right for them, it may be wise to weigh both the pros and cons. The Tax Cuts and Jobs Act along with proposed wealth taxes from presidential candidates have some people talking about the potential benefits that could come from individuals getting a divorce on paper in order to save money.
There are several ways that couples could save money by divorcing. Couples who are high earners may be able to save some money by filing their taxes as single individuals. They may also be able to qualify for Medicaid as single individuals in order to benefit from the health care savings that come from this program. Another way that they could potentially benefit financially is qualifying for more federal student aid for college-age children.
Despite these savings, it is good to understand some of the cons that could be experienced by divorcing. For example, the retirement benefits that the couple could experience are likely to be negatively affected by a divorce. The same is true with any health insurance coverage that may be provided by the employer of one working spouse. Business interests may also be split in a divorce, which could negatively impact the couple’s finances.
Doing anything that would give away control of a business or take away health care or retirement benefits in order to save money in other areas could have a negative impact on the couple and their entire family. Some couples decide to speak with a lawyer before making any decision regarding divorce. The lawyer may be able to provide information about divorce, property division and other aspects of separation would affect a family, like child custody. Even if the divorce is amicable, an attorney may provide assistance with things like filing divorce papers or representing a client in court.