Looking at the whole picture before getting a strategic divorce

Most people are interested in ways that they can save money, but not everyone is interested in putting their marriage on the line to do so. However, the so-called ‘marriage penalty” has some high-earning Pennsylvania couples talking about using a strategic divorce in order to save money on their taxes. The Tax Cuts and Jobs Act subjects high-earning couples to a higher tax liability when they file taxes jointly.

Despite the fact that strategic divorce can be used to help some couples save money, there are several downsides that a couple would want to consider to make sure they are not saving money in one area and then losing money or paying out a lot of money in another area. For example, one spouse may use health insurance that comes through the other spouse’s employer. If a couple were to divorce, private health insurance policies can be expensive, up to $12,000 per year.

Strategic divorce could also negatively affect a business that is owned by a couple. Even if the terms for the divorce are amicable, one of the individuals may be making a decision that would give away their control of the business from a voting power perspective. It is a lot of leverage to give to someone. The individual who has less power may always have doubt in the back their mind.

Before a couple makes a decision about divorcing in order to save money, they may decide to speak to an attorney. A family law attorney may be able to provide information about how a divorce would impact their business interests. The couple may find out how the business would be split in the divorce and how much control each ex-partner would have over it. The attorney may also provide other practical information to help a couple make a decision that would benefit them now and in the future.


FindLaw Network