Some Ohio couples are talking about using a strategic divorce in order to help them save money on taxes. This is something that could be helpful to couples who are high earners, considering the way the Tax Cuts and Jobs Act that went into effect in 2018 subjects them to higher taxes when they file together.
This is not the only way that a strategic divorce can be used to help some couples save money. Another way a strategic divorce can help couples is to help one qualify for Medicaid if they need nursing home care. The other option would possibly be to exhaust their savings and other assets in order to pay for the care on their own.
Some couples may use a strategic divorce in order to qualify for more federal aid for a child who is interested in a college education. These options are considered more often by couples who are not mega-rich.
While there may be some ways to save money by getting a divorce on paper, it is also important to look at ways that a couple could lose money or benefits. A divorce could negatively impact a couple’s retirement benefits. It could also take away certain health care coverage from some members of the family or even negatively affect a couple’s business, perhaps giving one a lot of control and pushing the other one out.
Divorce is a major decision, so many couples turn to an attorney in order to understand the facts before making a decision. The attorney may be able to provide information about how a divorce would impact a couple’s finances. The attorney in addition to child custody, child support and other issues that could potentially arise once a couple starts the divorce process.