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Financial Planning / Tax Strategies


Subject:  Re: Marriage Penalty Returns Date:  1/20/2013  9:24 AM
Author:  SamuelClemens Number:  117424 of 123153

Yes, you would need to talk to a lawyer about all the repercussions of a legal divorce and how to deal with them. One that comes to mind is legally making each other medical proxy in case of incapacitation. Also, what will the impact be on estate taxes if one of you passes away and are not entitled to spousal transfer of assets without taxation?

This is definitely something I would have to research. My thinking was that I could possibly set up a situation in a similar way that a gay couple must set up matters -- that is, affording the legal protections of a couple without the actual marriage. How effectively can the legal protections of marriage be simulated with a trust?

Additionally, you would need to figure out how to address this with your children. What kind of example to you want to set for them? I am not making judgements here, and I think you pose interesting questions, but these are also issues you need to think deeply about how they will be perceived. Will you tell your kids about the "divorce," or simply carry on as though nothing were changed?

I would tell the children. In fact, I've already told them its being considered. I wouldn't do it without replacing it with legal documents in place which would replicate the present financial arrangement (shared everything), assuming that