Some New Jersey couples are considering strategic divorce in order to save money on taxes, help an ill spouse qualify for Medicaid or secure more funding in order to help pay for a child’s college education. However, before a couple decides to get divorced on paper in order to reap financial benefits, they should look at what is at stake.
Lots of people may feel awkward thinking of asking their spouses for a divorce in order to save some money. However, there are many reasons why chatter regarding this subject has been increasing. The Tax Cuts and Jobs Act requires married individuals to pay higher taxes as opposed to single individuals who would make the same amount of money individually. Also, some presidential candidates are proposing wealth taxes, causing some to feel that a divorce on paper could help them hold onto more of their money.
Before a couple divorces in order to save money, they need to consider potential unforeseen consequences that could affect them both financially and socially. For example, it may be true that a couple will be able to save money on taxes if they divorce and file as single individuals. However, the divorce is likely to negatively affect their retirement benefits, health insurance that covers the entire family and any business interests that the couple share.
Some couples think that divorcing on amicable terms means that nothing negative will occur during the divorce process. It is best for a person to get the facts. Some have turned to an attorney in order to learn about how a divorce would impact them financially. A lawyer may provide legal advice regarding asset division, debt division and other financial matters that would affect a couple as they end their marriage.