Many couples in New York and throughout America have likely thought about the impact that divorce could have on their finances. They may have also pondered how it could impact their access to an affordable health care plan. If you have thought about divorcing your spouse for strategic reasons, it is important to understand both the potential benefits and potential downfalls of doing so.
You could help your child qualify for financial aid
When students apply for financial aid, whether or not they get accepted and the amount of aid they are offered depends on how much their parents make. If parents make too much, student aid can be denied altogether. If you were to divorce, the application would depend on only the custodial parent’s income instead.
You might save money on taxes
Taxpayers who are in the 37% tax bracket may be better off filing their taxes individually instead of as a couple. Based on tax brackets for the 2019 tax year, a person could save $900 by filing as a single person as opposed to jointly with a spouse. However, a divorce could also mean losing the ability to put money in a retirement account on behalf of a spouse.
You could lose control of a business
If you and your spouse owned a business together, it may be necessary to divide it as part of a divorce settlement. Therefore, you could lose your ownership stake or other rights to benefit from any future revenue it produced.
Talking with a family law attorney may help you better understand the potential consequences of ending a marriage. This may make it easier to decide if a divorce is worthwhile whether it is done for strategic reasons or other purposes.