Some couples in New Jersey have considered a strategic divorce in order to save money on taxes and experience other financial benefits. Of course, before any couple would decide to do this, they would want to look at any long-term financial and social ramifications this may bring.
Couples who are not rich may look at a divorce on paper in order to benefit an ailing spouse who does not currently qualify for Medicaid. The spouse may have an illness or need nursing home care but has to many assets that make them unqualified for Medicaid. Some couples have decided to slowly draw down their assets, pay down their bills and exhaust their retirement accounts to pay these bills while others get a divorce and allow the sick partner to qualify for care.
Another reason some partners decide to divorce on paper is to allow one of their children to qualify for financial aid. Together, the couple may have too many assets for the child to qualify for aid. However, if they divorce on paper, the custodial parent will have fewer assets and a lower income, which means that the child could qualify for federal aid that will pay for their education.
Some couples decide to save money on taxes by divorcing on paper. If both partners are high earners, they could end up in lower tax brackets if they are able to file as single individuals. Before a person would make any decision, they may decide to speak with a family law attorney to learn about the impact this kind of decision could have on their finances now and in the future. The attorney may be able to provide practical help like drawing up papers and even representing a client in court if it is necessary.