Legal Separation Financial Benefits

If you are currently married but are not happy and wish to end the relationship, there are a few different options. Two of the most common options are legal separation and divorce. Divorce is well-known and very common, ending in the dissolution of the marriage. It also allows a couple to separate and divide up property and assets. Child custody and maintenance may also be worked out in a divorce.

Legal separation is not as well-known. If a couple legally separates, they do not dissolve the marriage, but instead will have a separation agreement. Many of the same issues are addressed, such as child visitation, custody, alimony, or maintenance. However, it does not divide up properties and assets unless both people agree to it ahead of time. Neither spouse is allowed to remarry because the marriage has never been formally dissolved. There are differences in how finances are handled in each option so it is important to evaluate all your options before making a firm decision.

What Is Better About Legal Separation?

Not all marriages will benefit more from legal separation. However, if you wish to take advantage of any of the benefits below, it may be beneficial to legally separate instead of divorce:

• Increased social security benefits after 10 years of marriage. If a couple is married at least 10 years, then gets divorced and does not remarry they are entitled to certain social security benefits. The benefits are either based on their own work record or 50% of what the ex-spouse is entitled to based on their work record.
• Health insurance benefits. If a couple is divorced, employer health insurance plans do not cover the ex-spouse. However, with a legal separation, it is possible the health insurance may still cover the spouse. You would need to check the fine print of the insurance benefits, but it is possible they would still be covered.
• Tax benefits from filing jointly. Again, this is not a certainty and you would need to do more research to find if this would work in your specific situation, but it is possible that you would receive tax benefits if you do not divorce and file jointly.
• Pooling resources. If money is tight for a couple and they are not able to live on their own, they may still live in the same household and pool their resources together.

Contact Our Skilled Lombard Legal Separation and Divorce Lawyers

If you are married and would like to determine if you should get a legal separation agreement or a divorce, contact the helpful attorneys at Mevorah & Giglio Law Offices. Our knowledgeable DuPage County divorce attorneys will work with you to determine what is best for you. Contact us today at 630-932-9100 for a free consultation.

Sources:

https://www.liveabout.com/financial-benefits-of-a-legal-separation-agreement-1102456

https://www.foxbusiness.com/features/separation-or-divorce-what-each-means-for-your-finances