The current economic environment encourages spouses to save as much money as possible. Divorce plays an interesting role in this modern era. On the one hand, divorce is too expensive for many spouses to even consider, as it involves legal fees, the division of assets, and support payments. On the other hand, some spouses have come to the conclusion that a so-called “strategic divorce” can actually save them money in the long run. But how is this even possible? Is it legal? Should you choose a strategic divorce?
Strategic Divorce Explained
For the most part, strategic divorce is only really beneficial for spouses with high net worth. One of the most obvious reasons to get divorced is to put yourself in a lower tax bracket. If the divorce places both spouses in a lower tax bracket, this is obviously going to be beneficial for you financially.
Another common reason for a strategic divorce is to qualify for Medicaid. For example, one spouse might incur seriously expensive medical costs after reaching retirement age. If both spouses divorce, the spouse incurring the medical expenses may suddenly have a much lower income in the eyes of the government. This means that they can qualify for Medicaid and pay for things like nursing homes, surgeries, and so on with assistance from the government.
In addition, spouses sometimes get strategic divorces in order to help their children qualify for funding assistance from the government. If one spouse retains primary physical custody after a divorce, their income and overall net worth may suddenly be much lower. As a result, the child will qualify for higher levels of funding assistance, allowing families to pay for tuition more easily. This is clearly an example of “playing the system,” but it is technically legal.
The Downsides of Strategic Divorce
Strategic divorce requires an incredible level of trust between spouses. If one spouse is willing to forfeit their right to the marital estate in exchange for tax benefits, they must feel very confident about the other spouse’s long-term commitment to the relationship – especially when it comes to financially supporting the low-income spouse. Both spouses may also experience issues with things like retirement planning.
Is it Even Legal to Stay Together After a Divorce in Georgia?
One of the most common misconceptions about divorce is that you must live apart from your spouse after the marriage has been terminated. There’s no law forcing you to do this, and there is absolutely nothing wrong with continuing to live under the same roof as your former spouse after a divorce. This means that after a strategic divorce, your life will continue as normal for the most part.
Where Can I Find a Qualified Divorce Attorney in Georgia?
Lankford and Moore Law is a qualified, experienced law firm that specializes in divorce. We have been helping divorcing spouses for many years, and we can guide you toward a positive outcome. We know that financial security is important in the modern economic climate, and you can review various strategies during a consultation with us. Aside from strategic divorce, there are many other options available to you. Reach out today to get started.