4 May 2018
 Categories: Law, Blog

Divorce is a big step, but there is an interim step that might help you prepare for it. The separation period allows couples to make some important decisions outside of court and can stand as more than just a transition period if you tie it to some legal actions. Read on to learn more about how some financial moves made using a legal separation agreement could mean some long-lasting benefits for you and your children.

Protect your short-term financial situation

Many divorcing spouses don't realize that they can, and should, have certain types of support ordered during the separation period. If you are the parent of a minor child, you may be entitled to have child support paid for that child's care even before the divorce process begins. Child support is based on need and income, not on your marital status, so make that a provision of your separation agreement and have a judge sign an order.

Spousal support (also called alimony or maintenance) is still out there for spouses who need it, and it may be ordered during the separation period by using a court order. The ability to get this form of support depends on income, health, age, education, employment, and more. Each case is unique, but this form of support is used as a temporary measure during the separation and then after the divorce is known as rehabilitative support or permanent support.

Protect yourself from unfair debt responsibilities

When it comes to financial issues during divorce, the division of debts can be among the most contentious. Placing a firm and legal line in the sand once you legally separate could prevent you from being liable for your spouse's spending and debts accrued during separation. For example, if your spouse puts their new apartment rent on a joint credit card, you could end up having to pay for one-half of that debt when the time comes. Pay attention to joint debt credit cards and other loans and get the numbers down on paper before it's too late.

Use the status to hang on for a while

Many couples decide to stay married for financial or other reasons for a time and then to divorce later when things are better. For example, if you are dealing with illnesses, substance abuse, school problems, or other issues, you and your spouse might agree to enter into a separation agreement to extend the marriage while still giving you relief from one another. There are two financial situations, in particular, that might benefit from that decision.

1. Keeping healthcare coverage when one spouse's work benefit is needed. This might allow the other spouse time to get needed coverage onboard before the divorce.

2. Staying married for at least 10 years to give one spouse the opportunity to take advantage of the retirement benefit for divorced spouses offered through Social Security.

Speak to your divorce lawyer to learn more about the many benefits that having a legal separation agreement can bring to your financial situation.