Some couples in Indiana are concerned about how much they will have to pay in taxes because of what is being called the “marriage penalty.” Taxpayers who file as a married couple and have a taxable income in the 37% bracket may look at a strategic divorce in order to avoid this levy.
Before a couple would make this decision, they need to think about both the financial and social impacts the divorce would have on them in the short term and the long term. Some couples have decided that this is a beneficial route for them to go because of the tax savings that they would be able to experience if they are able to file as single individuals. However, there are often unforeseen consequences that surprise people, so it is necessary to know all of the facts before making a decision.
In addition to saving on taxes, there are other ways that couples may be able to save money when it comes to divorcing on paper. One example is getting more federal aid for children who will soon be going to college. When the couple is married and they both are high earners, they may get little federal aid or none at all. However, if the custodial parent has a low income and few assets, they may walk away with more federal student aid for their college-age children.
It is important for individuals to be familiar with all divorce legal issues that may arise and determine how this will impact the entire family if the couple decides to divorce. A family law attorney may be able to provide information about divorce legal issues, property division, child custody, visitation plans, and other matters that would arise if the couple decided to end their marriage in order to save money on taxes or for a wide variety of other reasons.