Legal Separation Attorney in New York, New York
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Questions concerning whether divorce or separation is right for you – and this is particularly true in a graying divorce scenario – is whether or not you want to maintain, for example, the ability to file married jointly. Also whether or not – and this is particularly important for people who are pre-Medicare – whether or not you want to continue health insurance coverage.
Once you get into a divorce judgment, you are no longer able to file married jointly and your tax rates change. These are things that you need to talk about with your tax professional, but I can certainly say that your tax rates will change and the way you file will change.
The health insurance issue, once you have a divorce judgment, there is a federal law that the state cannot control that is triggered into action. Namely, Cobra. The Cobra law requires that at the time a divorce judgment is signed that the insurance company no longer has to carry the spouse that was on the policy. That person now has to go out and find their own insurance.
So you want to think about it from, is the ability to file married jointly important? And for people who have assets and resources that can be a very important consideration. And also the ability to continue the current health insurance coverage is also something that needs to be considered and is a very individual choice.
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New York, NY divorce attorney, Ken Jewell talks about when separation should be considered for a married couple thinking about divorcing. He mentions that when considering whether divorce or separation is the right option—particularly in what is often called a “graying divorce” scenario—there are several practical issues to weigh. One major consideration is the ability to continue filing taxes as married jointly. Another, especially important for those who are pre-Medicare, is maintaining health insurance coverage.
Once a divorce judgment is entered, the option to file jointly disappears, and tax rates and filing requirements will change. While the specifics should be discussed with a tax professional, he emphasizes that a divorce will inevitably alter both your filing status and potential tax obligations.
Health insurance is another critical factor. Once a divorce judgment is finalized, federal law—specifically COBRA—comes into play. Under COBRA, the insurance company is no longer required to cover the former spouse, meaning that individual must secure their own policy.
He advises clients to carefully consider whether retaining the ability to file jointly and maintaining current health insurance coverage are priorities. For individuals with significant assets or preexisting health concerns, these considerations can be pivotal in deciding whether legal separation or divorce is the better path.
