Marriage and money don't always mix.

Divorce is rarely pleasant, and it is a very expensive endeavor. However, there can be benefits to divorce if it comes down to necessity. In some cases, couples find themselves pressed into a divorce for financial reasons when they still love each other. Still other couples find that staying single is the best alternative financially, even if they would like to remain married.

Taxes

There is a general misconception that married couples receive a tax break. However, Xin Lu of WiseBread.com points out that the Alternative Minimum Tax (AMT), automatically puts married couples in a higher tax bracket than their similarly salaried single counterparts.

Financial Liability

When a couple gets married, assets are pooled so that if one partner is sued for any reason, all of the family's financial assets can be seized. If a couple never marries, live together singly or gets divorced, they are considered individuals. So, if one partner is sued, the assets of the other are safe. It should be noted that there are downsides to living as separate individuals. Homes must either be in one name only--leaving the other partner without any control--or it will be a joint asset. This applies to any big ticket item that would normally be shared property of the couple, like cars, boats and recreational vehicles.

Credit and Debt

The newer credit reporting methods allow for both parties in a marriage to be individuals on their credit report. Any combined bills such as mortgages, auto loans or credit cards the couple shares will appear on both reports. There is a benefit for divorcees and other single people when it comes to debt. Even if a debt is only listed under the name of one half of the couple, if a couple is married and defaults on a loan, the assets of both partners are attached in a settlement. This is not true for divorcees.

Social Security

Some older couples are foregoing marriage and just living together as singles to continue with benefits, according to financial planning service Garrett Planning Network. For instance, a surviving widow who receives her late husband's benefits will lose them when she remarries, which can mean a sizeable loss of income.

At the Law Office of Brad M. Micklin Esq. we specialize in divorce and family law. We will work hard to protect you and your family during the separation and divorce process. We can also assist you with your estate and trust planning needs. Call us at 973.562.0100 our experience team of professionals is ready to take your call.

posted on eHow.com