If you’re legally divorced by 12/31, the IRS treats you as unmarried for the entire year—you cannot file as married. A suspended divorce or legal separation may preserve certain tax options, and divorce financial expert Scott Levin is among the most experienced in utilizing California suspended divorce loopholes to save clients from unnecessary taxes.

Legal separation has tax implications. Couples may need to file as “single” or “head of household” instead of jointly. If still married on 12/31, filing separately usually costs more than a joint return and can create real financial impacts.

Employer Benefits may terminate for legally separated spouse. It’s essential to review employer policies, as some companies may not cover a legally separated spouse through the company provided health insurance. In such cases, the non-employee spouse will need to secure alternative health insurance options. We refer to Jacques Dionne at New York Life to help with medical insurance options.

One of the lesser-known financial implications of legal separation is the effect on health insurance and other benefits. Many couples stay legally separated rather than divorce to retain benefits, such as health insurance coverage under one spouse’s plan.

Custody arrangements can significantly impact the financial situation of both parents. Once not living together, each parent will have to pay individual housing costs while also paying for the kids’ food, clothing and other expenses that previously were shared. If there is a difference in incomes or if one parent has greater parenting time, child support payments will be due as well. Hiring a mediator who is also a CDFA support expert to calculate the correct amount of child support is extremely important.

Dividing community property can be complex, which is why having a Certified Divorce Financial Analyst® like Scott Levin as your mediator is essential for accurately determining what portion of a home, 401(k), or other assets is community versus separate property. While the math is critical, equally important is the ability to connect with both parties and foster give-and-take negotiations that lead to fair, lasting settlements.

Both divorce and legal separation require decisions about custody and child support. Through our mediation services, Certified Co-Parenting Specialist™ Mary Levin helps parents create parenting plans that serve the best interests of their children. Attorney-mediator and CDFA® Scott Levin guides families in determining accurate support amounts and in sharing costs such as activities, summer camps, and childcare.

Spousal support, or alimony, may be awarded during a legal separation. The aim is to ensure that the lower-earning spouse can maintain a similar standard of living. The amount and duration of spousal support depend on factors such as the length of the marriage, the needs of the receiving spouse, and the paying spouse’s ability to pay. During the separation process, temporary spousal support orders can be issued to provide financial assistance until a final agreement is reached. These orders can be modified if circumstances change. If you remain living with your partner during or after the legal separation process, it is common to delay spousal support until you are no longer living together. This is because while living together, you likely continue to share costs and bills and if support commences, the recipient would then contribute a portion back to the joint costs. But there is not one way of handling this period of time and couples can work with a legal separation lawyer specializing in creative separation settlement agreements tailored to the needs of each client.