Legal Separation: The Financial Benefits Explained
Over the years, legal separation has gained popularity. This has nothing to do with love and everything to do with money. A legal separation is a court order that specifies the rights and responsibilities of each spouse while they remain married yet apart. This can be a “loophole” from losing lots of money in a divorce case. Though there are other reasons for separation, such as religious beliefs or hope for improvement in the future, many have discovered the money-saving capabilities that legal separation can have and decided this was the best option for them and their family. Read about the various financial stipulations that a legal separation can eliminate before deciding to choose divorce.
- Social Security Benefits: By law, a marriage must last at least 10 years to receive social security benefits that coincide with your spouse. Though these benefits do not begin until you reach 62 years of age, many couples think of this before signing the divorce papers, especially those who are close to the finish line. Many couples will choose to be legally separated until the 10-year mark, then use their legal separation agreement as an outline for their divorce.
- Health Insurance Benefits: Whoever is the “breadwinner” of the household usually holds the health insurance benefits; however, some employer’s health plans allow spouses that are legally separated to continue with the benefits. This is a case-by-case basis and is dependent on the employer’s contract and plan.
- Tax Benefits: Some choose legal separation in hopes that they will save money if they file their taxes together. This is also dependent on a case-by-case basis. Because of the complexity of tax law at the state and federal level, some states allow legally separated couples to file their taxes together while others do not.
- Personal Finances: It is no secret that divorce is an expensive life adjustment. Some couples simply cannot afford to move out on their own and buy everything needed to start a new life. In this case, couples will get legal documents stating their separation and “divide” the belongings in their household.
Discuss Your Situation with an Attorney
Legal separation changes state to state, making it necessary for a detail-oriented lawyer who knows the federal and state regulations inside and out. Our Kane County legal separation attorney has extensive experience throughout Northern Illinois, serving clients in St. Charles, Geneva, Aurora, Batavia, Wheaton, Yorkville, Elgin, and the surrounding areas of Kane, DuPage, DeKalb, and Kendall Counties. Call the office of Shaw Family Law, P.C. to receive your free consultation, educating you on the legal separation process and the benefits involved.