No. of Recommendations: 5
For High Income Earners, Time for a ‘Tax’ Divorce

"The new law raises taxes on couples making more than $450,000 and individuals making more than $400,000. When their accountant told them they may have to limit their deductions because of their joint incomes as well, they asked her to run the numbers and come up with an alternative.

At their next meeting, she presented them with two options—file as a married couple and pay the piper, or divorce and file as “single.” As it turns out, George and Martha would save over $27,000 a year if they divorced. And so they did. But they’re still together, in some ways closer than ever."

http://www.thefiscaltimes.com/Articles/2013/01/04/For-High-I...

It's almost as if taxes affect human behavior.
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