Children and Divorce

 

In many cases where a couple obtains a divorce, at first they separate. Sometimes they can live apart for many years before the divorce application is made. But the fact that you separate gives rise to the possibility of financial difficulties.

Divorce is a state by state issue and some states don't regard a couple as being separated unless there is a formal agreement stating the facts and signed by both partners.

It might be that one spouse agrees to pay spousal support while the couple is separated and until a divorce judge makes a ruling on any alimony.

In some states, unless that spousal support is part of a written agreement, the court will not recognize it. So the lesson is to (a) find out the law as it applies to separation agreements in your state and (b) whatever you do, put all actions in writing and have both parties sign such an agreement.

The partner unofficially paying his or her spouse may not be able to claim tax deductions unless the spousal support is ratified beforehand.

After a divorce when one partner pays money to the other, that money is known as alimony or maintenance or spousal support. The point though is this arrangement is ordered by a judge. If you are granted spousal support, you will have the power of the court to see you get that money. You must of course make your case for support at the divorce hearing or, if you are lucky or clever, you will reach an agreement with your spouse before going to court.

Taxation is, at times, a convoluted and complex piece of legislation. Once you divorce, it may be possible for you to be liable for less tax as a single person than as a married couple. Certainly your overall income will be lower. The point is that more and more people contemplating divorce are meeting not so much with a lawyer but with a financial planner. As is so often said, divorce can be a draining experience. You don't want to make it worse by having your fingers burnt regarding money.

And not only are the tax laws at times a nightmare; so too is medical aid from the government. It has got to the extreme case where some couples, who do not want to divorce one another, go ahead and file for divorce because one partner will get a much better deal from the government in terms of medical aid if they are single. Not that anyone is recommending this scenario but it does highlight the vagaries of some forms of legislation.

One final factor to consider is the word spouse. You are only a spouse when legally married and many pension schemes and super funds use the term spouse in a literal and legal way. To receive any money from said schemes when you are a spouse is one thing. To become divorced and no longer a spouse, is something quite different. You may lose any and all entitlements. This is yet another reason why advice from a financial consultant is best as soon as you consider filing for divorce.


Here are additional resources you might be interested in:

Divorce and Child Support

More information on Divorce Children and Divorce click here.