Divorce can be expensive, especially if you’ve been married for decades and have accumulated significant assets. However, there are some surprising financial benefits to divorce you may not have considered. While these might not make up for the time, expense and emotional cost associated with divorce, they are a silver lining.
Financial aid for college-bound children
When your kids fill out their FAFSA, the government will ask about parental income. Pay special attention to questions 16 and 59. They want to know whether either or both incomes should be considered before doling out assistance.
If you’re divorced, only one income is considered: the parent who spends the most time with the child. Your child may have greater opportunity for financial aid based on that single income.
Medical benefits
Healthcare is expensive, especially if you need long-term care. If you need Medicaid assistance, you won’t be eligible until you meet a certain low income and asset threshold—include joint marital assets. Some couples choose to divorce to protect their hard-earned home and other assets, so the sick partner is eligible for Medicaid coverage. Even if you aren’t divorcing specifically for healthcare reasons, you may end up qualifying for Medicaid coverage as a result.
Social Security benefits
If you meet certain requirements, you may both be able to collect a full Social Security spousal benefit once you hit full retirement age, while allowing your own benefits to thrive until age 70. This is only available to one spouse when you’re married.
It’s important to talk to an attorney before you file for any of these benefits. They all have specific eligibility requirements, which could affect other parts of your finances, divorce proceedings or other aspects of life.
For trustworthy divorce assistance in St. Paul, MN, call Appelhof, Pfeifer & Hart, P.A. today.
