A demise of a marriage is seldom a happy event and usually comes with significant emotional and monetary struggles. There are times, though, when a divorce filing can result in a few financial advantages. Colorado residents who are in the beginning stages of a divorce may benefit from a few of these.
Once a new year commences, it often is heralded by an increase in divorce filings. While a dissolution is never a pleasant undertaking, it does not always mean that one’s finances will continually suffer. There are some situations that may result in monetary gains — one of which is a change in tax filing status. While it is often assumed that a married filing status results in the best tax rates, there are times that two incomes mean a higher tax bracket. A single filing status may translate into lower taxes.
Another possible benefit is the right to receive a portion of a former spouse’s Social Security income as long as certain conditions apply. If a spouse was married for a minimum of 10 years and is at least age 62, then it may be possible to receive the ex-spouse’s benefits once he or she is of age, as long as one remains single. If not, then these benefits may be received when a current spouse qualifies for them. If one was not employed during a marriage, then he or she may be entitled to half of an IRA account at the time of the divorce.
One other advantage regarding monetary well-being is the opportunity to be one’s own financial planner. Without the input or spending of a former spouse, one is free to invest or save as he or she sees fit. While a divorce is a daunting ordeal in many ways, it does not have to be the end of dreams and goals. Colorado residents may choose to seek advice from a knowledgeable family law attorney on how best to prepare for the divorce and life afterward.
Source: newsday.com, “Divorce can bring unexpected financial benefits, experts say“, Sheryl Nance-Nash, Dec. 31, 2017