Bridging The Gap: How A Legal Separation Agreement Benefits You Financially
Posted on: 12 May 2017
If a divorce is in your future plans, you may be having a difficult time coping with the emotional effects of this major life event. You should understand, however, that your entire financial future can depend on the decisions you make in the next few weeks and months before your divorce becomes a final order. Many people mistakenly allow their emotions to cloud their thinking during this time, and the results can be disastrous. Read on to learn about how forming a legal separation agreement right now could end up benefiting your financial future.
Get some help for your children
Many parents are not aware of it, but you don't need to wait until the divorce is final to ask for child support. If you have physical custody of the children, you are very likely entitled to this important form of financial support from the other parent. Additionally, you can include other child-related issues, like custody and support, through temporary legal separation agreements. These orders can be folded into any permanent divorce decree, which could potentially make the divorce process shorter and less acrimonious. It should also be noted that you can ask for spousal support, or alimony, during this transition time.
Deal with debt now
The way that divorce deals with marital debt depends on whether you live in an equitable distribution state or a (less common) community property state. Regardless of how the debts end up being divided, however, you need to draw a definitive "line in the sand" for the accumulation of debt. A legal separation agreement will put a dividing line between marital debt and individual debts. This prevents spouses from being held liable for spending during the separation period.
Ensure your retirement
No matter your age, it's never too soon to be thinking about retirement planning. You may be entitled to a portion of your spouses 401(k), but there is another valuable form of retirement pay that can be negatively affected by a divorce.
You must be married for at least 10 years to benefit from half of your spouse's Social Security retirement pay. If you are nearing that 10-year mark, you may want to use a legal separation agreement to delay the divorce long enough to qualify for this valuable perk, particularly if you have reason to suspect that your earnings won't be as high as your spouse's. You can take this benefit when you (and your former spouse) reach full retirement age, even if your spouse remarries. You, however, cannot remarry and still use this benefit.
For more information, contact a family lawyer such as Margit M. Hicks, PA Attorney at Law.
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