Should A Strategic Divorce Be Part Of Your Estate Plan?

Marriage is one of the best investments you can make in your future.  Married people are healthier, wealthier, and less lonely than their unmarried counterparts.  The mere existence of your spouse makes probate simpler, because whether or not there is a will, the surviving spouse automatically inherits the couple’s jointly held property.  Some couples date for decades but only decide to get legally married as they approach retirement age, simply because marriage is a source of security in your old age.  Why, then, would getting divorced be part of someone’s estate planning strategy.  Even though it sounds counterintuitive, some couples, especially seniors and people who must retire early because of ill health, go through a strategic divorce because it would be financially advantageous for them to be single.  The more you think about this, the more dystopian it sounds.  Why would someone have to choose between family stability and getting their basic financial needs met?  If your goal is to take care of your financially vulnerable spouse, even if it means that you cannot be married to him or her anymore, contact a Tampa estate planning lawyer.

What Is a Strategic Divorce?

A strategic divorce is when a couple legally dissolves their marriage because doing so would free one spouse from certain burdensome financial obligations or give one spouse access to public benefits.  In strategic divorce, the parties are still committed to their relationship as a couple and as a family unit, and they often continue to live together, unless one of them requires long-term care in a residential facility.

These are some common reasons for strategic divorce:

• One spouse needs to enter a nursing home. So that the spouse who requires nursing home care can qualify for Medicaid, the couple gets divorced, and the healthy spouse keeps most of the marital property.
• One spouse wants to file for bankruptcy because of medical bills or other eligible debts.
• The couple is struggling with tax debt, and their tax burdens will be lower if they are unmarried.
• One spouse has an IRA, and the other spouse needs money from it. The couple gets divorced so that the financially needy spouse can get a QDRO, since this is less expensive than withdrawing money from the account as a current spouse.

Divorcing Someone You Love Is a Heartbreaking Choice, but Maybe There Is an Alternative

In all of these scenarios, strategic divorce is a matter of financial desperation.  No one wants to divorce when both spouses have honored their wedding vows and are committed to staying together.  Most strategic divorces are preventable.  To avoid making the heartbreaking choice to divorce your beloved spouse when he or she needs you the most, you should work with an estate planning lawyer starting now, before your health or finances get worse.

Contact David Toback About Strategic Divorce

A Central Florida estate planning lawyer can help you avoid situations where strategic divorce seems like the best option.  Contact David Toback in Tampa, Florida to set up a consultation.

Source:

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