Most couples in Minnesota end their marriage because they feel that their relationship is unhealthy or because they no longer love or trust each other. There are other couples, though, who are ending their marriage purely for financial reasons.
Some have referred to this as a strategic divorce. It may allow a couple to save money on taxes or to qualify for some type of assistance that they cannot qualify for together. For example, when both individuals are high earners and they have to file their taxes together, they may end up forking over a substantial amount of money to the government. However, filing as single individuals could potentially save them a lot of money.
Another reason why couples may decide to divorce to benefit themselves financially is to help a child qualify for federal student aid. High-earning married couples are likely to walk away with less federal aid for college for their child than one custodial parent who has few assets and a low income.
Medicaid has been able to help individuals cover medical costs and costs related to nursing home care. However, a couple may not qualify for this health care if they have significant assets. Some couples have decided to divorce so that the sick partner can qualify for Medicaid and get the coverage they need.
Deciding to divorce in order to benefit financially may carry long-term ramifications. A person may decide to discuss their situation with an attorney before making any big decisions. The attorney may help the person understand how a divorce would impact them financially both now and later on. The attorney may also provide information about the cost of divorce and assist with practical matters like drawing up paperwork.
