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Could divorce be a smart financial decision?

| Oct 22, 2019 | Divorce

Some Pennsylvania couples may be happy together and still in a loving relationship, but they may be prompted to consider divorce due to the financial implications of remaining married. While some reports indicate that ultra-wealthy couples may gain some tax benefits from being single, the amounts involved are usually far too small to offset the expenses and complications of divorce. However, for people of more modest means, the proposal of strategic divorce can seem a more reasonable idea.

For example, people who need intensive inpatient nursing care often cannot receive Medicaid support to pay the hefty bill unless all of their assets are spent down. As a result, the partner of the ill patient may have little to nothing left to support their own daily needs of life. Therefore, they may be prompted to consider how a divorce could help the suffering partner get the nursing care they need without financially devastating the other spouse. Parents may also be drawn to consider how divorce could affect college financial aid, especially as university tuition rises. Financial aid awards only consider the income of the custodial parent when a child’s parents are divorced, and parents may be willing to separate in order to help their children pay for college.

However, there are also a number of complex expenses associated with divorce and the property division process, and some of them can be especially concerning for people of more modest financial means. For example, one spouse may lose access to spousal pension benefits or may need to purchase new health insurance after the divorce is finalized.

Whether people are divorcing for practical reasons or because their relationship is over, the financial consequences can be substantial. A family law attorney may provide advice and guidance to a divorcing spouse on property division, spousal support and other key issues.