How Losing “Marital Privilege” Can Impact Your Finances after Divorce

There are specific financial benefits to being married that are considered marital privileges, and upon divorce, these are forfeited. While understanding the financial advantages is beneficial, these so-called marital privileges should not sway your decision to get a divorce – one way or the other. If you have come to the difficult decision that divorce is right for you, the financial advantages of remaining married are unlikely to move the needle (nor should they). If you aren’t sure, it’s time to do some soul searching (but your decision should be based on the big picture and not on a few specific financial benefits).
If you have concerns about divorce and marital privilege, don’t hesitate to explore your concerns and options with an experienced Illinois divorce attorney.

Marital Privilege

Marital privilege refers to the financial, societal, and cultural advantages that married couples generally experience. When you are part of a married couple, you walk through life a bit differently – not only in terms of your finances but also in the way you are perceived by society at large. Consider the following:

• If you are married, filing your taxes jointly as a married couple can provide you with an overall tax break and may even put you in a lower tax bracket. When there is a considerable difference between both spouse’s earnings, for example, the couple receives what is called a marriage bonus on their taxes.
• When you are married, you can also experience financial benefits related to your Medicare coverage, social security benefits, disability benefits, and veterans and military benefits.
• When both spouses are offered healthcare coverage by their employers, they can choose the better coverage (while unmarried workers don’t have that option).
• Married couples often receive discounts on car insurance, homeowners insurance, and long-term care insurance.
• Married couples tend to have better credit options and to receive better loan terms.

A Note about Progressive Taxes

Progressive tax refers to being taxed in relation to the level of one’s earnings, and it can be cut both ways. If you and your partner earn at a similar level, your earnings double when you marry, and your overall taxes can increase. If, however, one of you earns considerably more than the other, the relative reduction in your joint earnings when you marry (when both amounts are averaged between both of you) can reduce the higher earner’s tax bracket.

Your Marriage

Your marriage is far more meaningful than simply saving some money on taxes and insurance coverage, but understanding the financial bump can help you make better-informed decisions moving forward. If you are at the point where you are considering a divorce, it’s important to view the matter from every angle and to do what is right for you – in your unique situation.

Turn to an Experienced Illinois Divorce Attorney for the Help You Need

If you’ve come to the difficult determination that you need a divorce, the accomplished Illinois divorce attorneys at WARD FAMILY LAW are committed to skillfully advocating for your legal rights and best interests throughout the process. Learn more by contacting us today.