While marriage may seem like the best financial decision for a couple, there are times when you may see it differently. The marriage may turn into a financial strain. In these situations, according to CNBC, couples are turning to strategic divorce. Should you consider strategic divorce in Georgia?
The point of strategic divorce is to save money. Some of the reasons that a couple may decide to divorce for finances include decreasing the tax liability, fitting into a new income bracket for financial aid purposes with medical care or to support a child’s education. Couples should keep in mind that divorce is expensive by itself. In addition, you could lose the benefits that you and your spouse rely on.
The problem with strategic divorce is that there are still financial downfalls. If one spouse has access to a benefit pension with joint and survivor benefits, then upon retirement, the spouse receives a payout. However, after a divorce, that is no longer in play. Pensions may be a marital asset that you have to split.
In addition, if you have a 401(k) plan, then your spouse is the beneficiary. However, if you divorce your spouse, then this is no longer in effect. While you can sign a waiver for another person to receive the funds, it may be more complicated. Many couples suffer the hardest by the problems with health insurance once divorced. One partner could lose his or her coverage.
The above information is meant to inform on the topic of strategic divorce. It is not meant to be interpreted as legal advice.