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Financial Planning / Tax Strategies
|Subject: Re: Marriage Penalty Returns||Date: 1/19/2013 9:13 AM|
|Author: SamuelClemens||Number: 117406 of 122849|
Thanks for the quick responses.
All I can say is Wow. This is ridiculous. I cannot actually believe that I am considering divorce for tax reasons.
But I do anticipate our incomes to be around the same range ($350/$250) for the next five years or so, and some years it will likely be higher (we have some in-the-money stock options vesting which we were anticipating exercising). So if the tax difference is $20K+ a year, over the next 5 years that is $100K or so. I can do a lot with that amount of money. You know, like put a kid through college.
Just to add some color to the discussion. My wife and I are in our upper 40s. We met in college and will be married 24 years. We have three children, two in college and one in high school. We are very happily married. We are both in technical fields. Our jobs pay well but are both challenging and the situations somewhat volatile. That is, while I expect us to be similarly employed in five years, I would not be awfully surprised if one of us was out of work either (become fed up and walk, or company politics forces a change, for example). We live modestly compared to our means and have considerable savings. I don't think any of our friends and only a couple of family members know what we earn. We have a living trust. We were discussing retiring at 55 or so. We live in California.
So should I be speaking to a lawyer about the possibility of a quiet divorce, and setting up a trust instead? No one would need to know. What do gay couples do? I cannot believe that I am considering this. When we got married I had to sell my car to buy the engagement ring.
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