"Strategic divorce" for tax-purposes for 2 physicians

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MrMiyagi
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"Strategic divorce" for tax-purposes for 2 physicians

Post by MrMiyagi » Sun Mar 10, 2013 2:01 pm

Just a hypothetical. Say you and your spouse are both physicians, no kids. California. Say the annual income is 300k each. Would it be financially feasible to "divorce" for tax purposes? maybe I am doing the math wrong, but by my calculations, we would be paying ~19,000 more in federal taxes as a marriage penalty.

Are there any legal downsides to this for malpractice? Or when we have kids? Thanks! This is just a hypothetical, neither one of us are making 300k/yr but will make presumably at least 250k/yr after training ends.

If we filed SINGLE each: 300,000 each income
Federal Taxes: 44603.25 + (300,000 – 183,250)*0.33 = 83130.75
CA State Taxes: 2059 + (300,000 – 46766) *0.093 = 25609.77
Total income taxes (not counting FICA taxes) = 108740.512
Total = 217,481.03

If we filed MARRIED joint: 600,000 income
Federal Taxes: 125,846 + (600,000-450,000)*0.396 = 185246
CA State Taxes: 4118 + (600,000 – 93532)*0.093 = 51219.524
Total = 236,465.53

Savings if we’re both “single” over married: 18,984.50

stan1
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by stan1 » Sun Mar 10, 2013 2:34 pm

It's a little more complicated. You'll have deductible 401K contributions and deductions for state income taxes, property taxes, mortgage interest, and charities that will bring down your income taxed at the 39.6% rate -- but you'll also probably find yourself in AMT territory especially if married.

$18,984 is 3% of your total expected income each year.
I wouldn't let 3% of income drive your relationship.
What does your wife think about this idea? (yeah I'm assuming you are male, seems like men are more likely to come up with ideas like this than women :D )

Calm Man
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Calm Man » Sun Mar 10, 2013 2:40 pm

So you will divorce and then remarry when you have kids? Realistically, to the extent that you care about anything anybody says, they will think you're nuts and won't believe you anyway. I would be in the latter camp.Get divorced for the right reasons like I did - you can't stand the spouse :sharebeer

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Honobob » Sun Mar 10, 2013 2:48 pm

It would be hard to duplicate these.

http://www.hrc.org/resources/entry/an-o ... ed-couples
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mptfan
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by mptfan » Sun Mar 10, 2013 2:54 pm

Do not let the tax tail wag the common sense dog.

awval999
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by awval999 » Sun Mar 10, 2013 3:13 pm

I've read something like this on a NYT or similar NYC-esq site. Pretty much a huge marriage penalty with the new tax brackets because the 39.6% bracket starts at $450K/year in income for MFJ and $400K for single. So there's a $350K amount that could be taxed a less tax rate if duel income is around $400k per spouse. Honestly it wouldn't surprise me if there's a thread here already about it.

I mean--- I'm a male, so I think its a great idea. But as others mentioned you need to sell your wife on it. Personally I'd be like hey honey, we can have a $20k/year anniversity honeymoon every year because of this.

To protect yourself though you will need a cohabitation agreement, power of attornies, medical power of attornies. Only issue would be estate taxes if one would die suddenly and/or prematurally. The couple can always get married when tax rates changes or one goes to part time, no-time, retires, etc.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by bottlecap » Sun Mar 10, 2013 3:19 pm

It's intiguing, I'll say that. I would definitely do it for $20k per year, but then again my wife and I don't make $600k in the first place.

The fact that the state recognizes our marriage doesn't mean anything to us, though. You could enter into a divorce deceee that protects the spouses to the extent such protection are lost by divorce, I suppose.

JT

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by market timer » Sun Mar 10, 2013 3:28 pm

bottlecap wrote:The fact that the state recognizes our marriage doesn't mean anything to us, though.
Same here. My wife and I didn't register our marriage with the state.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by mptfan » Sun Mar 10, 2013 3:46 pm

I wouldn't do it. Maybe I'm old fashioned, but marriage means more to me than that. Some things in life are just more important than dollar signs on an account statement.

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Cut-Throat
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Cut-Throat » Sun Mar 10, 2013 4:01 pm

I recall seeing a program on 60 minutes where a couple (both Lawyers and high income), would divorce each year on Dec 31st. and then re-marry on Jan. 1st. They saved a ton on taxes every year. They used the proceeds to spend a 2 week vacation in the Caribbean every year. At the time I saw the program they had done this 14 years in a row.

kermit
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by kermit » Sun Mar 10, 2013 4:05 pm

What do the numbers look like for married filling separately?

Dave76
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Dave76 » Sun Mar 10, 2013 4:14 pm

mptfan wrote:I wouldn't do it. Maybe I'm old fashioned, but marriage means more to me than that. Some things in life are just more important than dollar signs on an account statement.
Well, if he's seriously considering this, then his marriage may be on shaky ground.

Side note -- How much money does one childless couple really need?
Last edited by Dave76 on Sun Mar 10, 2013 4:15 pm, edited 1 time in total.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by bsteiner » Sun Mar 10, 2013 4:15 pm

Cut-Throat wrote:I recall seeing a program on 60 minutes where a couple (both Lawyers and high income), would divorce each year on Dec 31st. and then re-marry on Jan. 1st. They saved a ton on taxes every year. They used the proceeds to spend a 2 week vacation in the Caribbean every year. At the time I saw the program they had done this 14 years in a row.
That was the Boyter case. Here is the Tax Court opinion: http://scholar.google.com/scholar_case? ... s_sdt=2,31 . Here is the 4th Circuit opinion on appeal: https://bulk.resource.org/courts.gov/c/ ... -1792.html . There is no reported opinion on remand, so either the case was settled on remand, or the taxpayer didn't pursue it on remand.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by AlohaJoe » Sun Mar 10, 2013 4:21 pm

MrMiyagi wrote:Are there any legal downsides to this for malpractice? Or when we have kids?
Of course there are legal downsides. It is one of the primary arguments for allowing same-sex marriages.

According to the GAO there are over 1,000 state and federal benefits you'd be missing out on. Joint insurance plans, judicial immunity (your not-wife will almost certainly be called to testify against you in any malpractice suit), next-of-kin status for hospital visits, tons of things around travel abroad (unmarried couples can't travel together in e.g. Saudi Arabia), Family and Medical Leave Act, standing to sue for wrongful death, etc.

trudy
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by trudy » Sun Mar 10, 2013 4:29 pm

Hey honey, let's get a divorce. We can save 3% of our income, minus the attorneys' fees.

Yes, I can see this going over well.

MrMiyagi
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by MrMiyagi » Sun Mar 10, 2013 4:53 pm

Can any physicians chime in? Especially regarding malpractice protection.

Thanks for the link regarding social security benefits, that was helpful. Although I think most of those benefits "lost" would only really be helpful to couples where one is a high earner, and the other is not working or a low earner.

I think for some legal issues - medical care type issues, power of attorney can be done. I'm not sure why kids would change anything. The kid(s) would never need to know. Also...not being married clearly doesn't stop people from having kids or raising them in a couple setting.

So far I don't really seem to find a good reason NOT to do this.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Dave76 » Sun Mar 10, 2013 5:14 pm

MrMiyagi wrote:Can any physicians chime in? Especially regarding malpractice protection.

Thanks for the link regarding social security benefits, that was helpful. Although I think most of those benefits "lost" would only really be helpful to couples where one is a high earner, and the other is not working or a low earner.

I think for some legal issues - medical care type issues, power of attorney can be done. I'm not sure why kids would change anything. The kid(s) would never need to know. Also...not being married clearly doesn't stop people from having kids or raising them in a couple setting.

So far I don't really seem to find a good reason NOT to do this.
But is it moral? Does it conflict with your values? What does marriage mean to you? What does it mean to her?

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by trudy » Sun Mar 10, 2013 5:23 pm

MrMiyagi wrote:The kid(s) would never need to know.
Of course, records of divorces and marriages aren't published in the newspapers, and no one you know is going to find out and throw the information in the rumor mill. I can just see the kids being asked at school out of the blue about their parents' divorce. Then the next year when someone asks them about it, they can explain, Mom and Dad are doing it to pay less taxes, they're getting married again in two weeks.

But let's have Pub 504 answer this: "Exception. If you and your spouse obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to remarry each other and do so in the next tax year, you and your spouse must file as married individuals."

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by White Coat Investor » Sun Mar 10, 2013 5:28 pm

trudy wrote:
But let's have Pub 504 answer this: "Exception. If you and your spouse obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to remarry each other and do so in the next tax year, you and your spouse must file as married individuals."
Oooh...I'm impressed with your sleuthing ability. Nice find.
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by simple man » Sun Mar 10, 2013 5:41 pm

Thank you Dave76 -- that is the question. This whole thread is sad. Do we really need to be reminded that marriage is not an economic transaction? Sure, it has purely economic advantages and disadvantages, but that is not the same thing....But if you need real downsides, maybe one is that once she is divorced, she may find a man that does not value the covenant of lifelong marriage at 3% of annual income....I advise you to be very careful on this one-- and always remember, as we say in the South, pigs get fat and hogs get slaughtered...

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Cut-Throat » Sun Mar 10, 2013 5:48 pm

simple man wrote:Thank you Dave76 -- that is the question. This whole thread is sad. Do we really need to be reminded that marriage is not an economic transaction? Sure, it has purely economic advantages and disadvantages, but that is not the same thing....But if you need real downsides, maybe one is that once she is divorced, she may find a man that does not value the covenant of lifelong marriage at 3% of annual income....I advise you to be very careful on this one-- and always remember, as we say in the South, pigs get fat and hogs get slaughtered...
If you guys actually believe that 'Marriage' has to be anointed by the state to have validity, then you don't understand Marriage. Marriage is a commitment made. The state is only there to assess taxes and other moneyed attributes.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Dave76 » Sun Mar 10, 2013 6:06 pm

Cut-Throat wrote:
simple man wrote:Thank you Dave76 -- that is the question. This whole thread is sad. Do we really need to be reminded that marriage is not an economic transaction? Sure, it has purely economic advantages and disadvantages, but that is not the same thing....But if you need real downsides, maybe one is that once she is divorced, she may find a man that does not value the covenant of lifelong marriage at 3% of annual income....I advise you to be very careful on this one-- and always remember, as we say in the South, pigs get fat and hogs get slaughtered...
If you guys actually believe that 'Marriage' has to be anointed by the state to have validity, then you don't understand Marriage. Marriage is a commitment made. The state is only there to assess taxes and other moneyed attributes.
Forget about the state. Marriage predates the state. Why make a mockery of marriage? Surely the vows he made must mean something to him. Why else would he have made them?

If I were married, my marriage would mean more to me than all the money in the world.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by simple man » Sun Mar 10, 2013 6:13 pm

Right -- so if marriage is a committment made, Miyagi's divorce would be what? ...a committment broken. I dont buy the talk of state validity and taxes --those are simple red herrings. To the faithful, marriage is a covenant among man, woman and God. To the secular, marriage is still a lifelong committment, and it should be significant enough that the 2 involved are willing to proclaim their union to society in general via a type of formal ceremony. Note I say society -- family, friends, public in general -- the state is less of an issue. The state merely adds the formality to the lifelong committment. Either you are willing to commit in public (which includes state paperwork) with a real ceremony of some type or you are not...but dont blame something as simple as tax laws...

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by ddunca1944 » Sun Mar 10, 2013 6:14 pm

My ex asked me to do exactly that. Divorce for tax reasons and continue to live as a married couple. I figured that he was not really committed to me if the tax issue was more important. (We made nowhere near $300K/yr) It definitely put a damper on any romantic feelings I had. I agreed to the divorce out of sheer pride (did not want to be married to someone who didn't want to be married).

I left him before it was even final and have been happily remarried for 21 years.

Seriously, with a combined income of $600K/yr you'd divorce for $19K? :?

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Cut-Throat » Sun Mar 10, 2013 6:25 pm

Dave76 wrote: Forget about the state. Marriage predates the state. Why make a mockery of marriage? Surely the vows he made must mean something to him. Why else would he have made them?

If I were married, my marriage would mean more to me than all the money in the world.
That's what the OP is saying. "Forget about the state"......You don't seem to 'get that'.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by blinx77 » Sun Mar 10, 2013 6:31 pm

Seems like this thread is starting to get a bit political. :oops:

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by ResNullius » Sun Mar 10, 2013 6:50 pm

ddunca1944 wrote:My ex asked me to do exactly that. Divorce for tax reasons and continue to live as a married couple. I figured that he was not really committed to me if the tax issue was more important. (We made nowhere near $300K/yr) It definitely put a damper on any romantic feelings I had. I agreed to the divorce out of sheer pride (did not want to be married to someone who didn't want to be married).

I left him before it was even final and have been happily remarried for 21 years.

Seriously, with a combined income of $600K/yr you'd divorce for $19K? :?
Great point. Really great point. Really, really great point. There's the dog, and then there's the tip of the tail.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by stan1 » Sun Mar 10, 2013 7:40 pm

ddunca1944 wrote:
Seriously, with a combined income of $600K/yr you'd divorce for $19K? :?
Well, it is $19K per year so over 30 years it would be $570K (plus any interest/appreciation from investing).

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William4u
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by William4u » Sun Mar 10, 2013 7:56 pm

One of the main reasons to work hard for a high salary is so you can afford the good things in life, LIKE STAYING MARRIED. If you can't spend a high salary on that, then what is money for?

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by lwfitzge » Sun Mar 10, 2013 8:00 pm

blinx77 wrote:Seems like this thread is starting to get a bit political. :oops:

not political to me, just depressing and shallow... looking forward to it falling down to the bottom of the index

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Cut-Throat » Sun Mar 10, 2013 8:01 pm

William4u wrote:One of the main reasons to work hard for a high salary is so you can afford the good things in life, LIKE STAYING MARRIED. If you can't spend a high salary on that, then what is money for?
So you feel the Paper Document and the Laws of the State constitute 'STAYING MARRIED'....My wife and I have a much higher calling.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by HueyLD » Sun Mar 10, 2013 8:23 pm

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by William4u » Sun Mar 10, 2013 8:26 pm

Cut-Throat wrote:
William4u wrote:One of the main reasons to work hard for a high salary is so you can afford the good things in life, LIKE STAYING MARRIED. If you can't spend a high salary on that, then what is money for?
So you feel the Paper Document and the Laws of the State constitute 'STAYING MARRIED'....My wife and I have a much higher calling.
Marriage is a public declaration. Divorce is too.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by MrMiyagi » Sun Mar 10, 2013 8:42 pm

Can we keep this thread to issues regarding tax advantages/disadvantages, malpractice issues, and asset issues?

I didn't ask a question regarding "what is the meaning of marriage? of commitment? is this moral?" That was not the question I asked. One could argue that a marriage must be even stronger for a couple to divorce over this, yet stay committed to one another. Maybe some people don't need a piece of paper to show that they are committed to each other? But I didn't post this thread to debate "what is marriage?"

Let's not turn this into a thread where people have to give their 2 cents on a question that wasn't asked. Thanks for the useful replies thus far.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by greg24 » Sun Mar 10, 2013 9:11 pm

"No, no, no, Saint Peter, you aren't understanding. We weren't REALLY divorced, it was a legal ruse to save more money. What's that you say about rich men and heaven?"

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Archie Sinclair » Sun Mar 10, 2013 9:13 pm

MrMiyagi wrote:Can we keep this thread to issues regarding tax advantages/disadvantages, malpractice issues, and asset issues?

I didn't ask a question regarding "what is the meaning of marriage? of commitment? is this moral?" That was not the question I asked. One could argue that a marriage must be even stronger for a couple to divorce over this, yet stay committed to one another. Maybe some people don't need a piece of paper to show that they are committed to each other? But I didn't post this thread to debate "what is marriage?"

Let's not turn this into a thread where people have to give their 2 cents on a question that wasn't asked. Thanks for the useful replies thus far.
This might be a legitimate expectation if you went to a financial planner and paid that person to give you advice. But these good people are participants in an internet forum, which basically means providing their 2 cents on the topic, within forum guidelines. Their 2 cents might be helpful to other people who read this thread, if not to you personally.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by natureexplorer » Sun Mar 10, 2013 9:22 pm

$19k is a lot of money.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by MrMiyagi » Sun Mar 10, 2013 9:24 pm

Archie Sinclair wrote:
MrMiyagi wrote:Can we keep this thread to issues regarding tax advantages/disadvantages, malpractice issues, and asset issues?

I didn't ask a question regarding "what is the meaning of marriage? of commitment? is this moral?" That was not the question I asked. One could argue that a marriage must be even stronger for a couple to divorce over this, yet stay committed to one another. Maybe some people don't need a piece of paper to show that they are committed to each other? But I didn't post this thread to debate "what is marriage?"

Let's not turn this into a thread where people have to give their 2 cents on a question that wasn't asked. Thanks for the useful replies thus far.
This might be a legitimate expectation if you went to a financial planner and paid that person to give you advice. But these good people are participants in an internet forum, which basically means providing their 2 cents on the topic, within forum guidelines. Their 2 cents might be helpful to other people who read this thread, if not to you personally.
Ok fair enough. But I've seen threads like this locked down for "political debates" and while I don't really care if people want to debate here, I do want an answer to my original question! LOL!

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by natureexplorer » Sun Mar 10, 2013 9:41 pm

stan1 wrote:
ddunca1944 wrote:Seriously, with a combined income of $600K/yr you'd divorce for $19K? :?
Well, it is $19K per year so over 30 years it would be $570K (plus any interest/appreciation from investing).
It's like with expense ratios, you have to look at absolute amounts.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by tfb » Mon Mar 11, 2013 2:41 am

natureexplorer wrote:
stan1 wrote:
ddunca1944 wrote:Seriously, with a combined income of $600K/yr you'd divorce for $19K? :?
Well, it is $19K per year so over 30 years it would be $570K (plus any interest/appreciation from investing).
It's like with expense ratios, you have to look at absolute amounts.
Agree.
Harry Sit, taking a break from the forums.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by trudy » Mon Mar 11, 2013 4:33 am

MrMiyagi wrote:Can we keep this thread to issues regarding tax advantages/disadvantages, malpractice issues, and asset issues?
The tax advantage is zero, and you're opening up yourself and your wife to charges of tax fraud with the associated penalties. Let me repeat:

Pub 504: "Exception. If you and your spouse obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to remarry each other and do so in the next tax year, you and your spouse must file as married individuals."

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by SGM » Mon Mar 11, 2013 5:10 am

19k yearly is a lot of money, and I see nohing wrong with legal tax avoidance. I could see this working if both spouses were cooly logical, but given the fragility of relationships it is an extremely risky proposition at best.

The topic is certain to elicit many irate comments as it concerns physicians, perceived wealth, legal tax avoidance, morality, customs and stirs envy and memories of ex husbands. Don't underestimate the ability of a BH to cast stones, first or otherwise. :D
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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by tfb » Mon Mar 11, 2013 10:16 am

trudy wrote:
MrMiyagi wrote:Can we keep this thread to issues regarding tax advantages/disadvantages, malpractice issues, and asset issues?
The tax advantage is zero, and you're opening up yourself and your wife to charges of tax fraud with the associated penalties. Let me repeat:

Pub 504: "Exception. If you and your spouse obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to remarry each other and do so in the next tax year, you and your spouse must file as married individuals."
Just don't intend to remarry and don't do so in the next year? Then the whole Exception won't apply.
Harry Sit, taking a break from the forums.

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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Default User BR » Mon Mar 11, 2013 10:33 am

It might be a pretend divorce, but both parties would need to treat it like it was absolutely real. That means dividing assets just as if were going to be permanent. After all, one spouse might meet somebody and figure, "hey, already divorced, so long!"


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Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by protagonist » Mon Mar 11, 2013 10:47 am

Dave76 wrote: Why make a mockery of marriage? Surely the vows he made must mean something to him. Why else would he have made them?

If I were married, my marriage would mean more to me than all the money in the world.
I would venture a guess (yes, just a guess) that 90% or more who marry do so with the view that their love would endure forever, and with the sincere intention of honoring their vows.

I'm sure if you were married, you would too, and hopefully you would not become one of the 50% or so who later get divorced (close to 66% for second marriages, close to 75% for third marriages), or the unknown percentage of those remaning married who stay together not because of what their marriage means, but for practical reasons only (such as well-being of the children, insecurity of going solo, fear of public scorn, financial concerns, etc).

If you were married (your words), perhaps you would be one of the lucky ones whose marriage would remain, for your lifetime, meaning more than all the money in the world. I hope so. It is such a wonderful thing to see. But if you were in the unfortunate majority and its meaning faded, perhaps you would remain holier-than-thou. Or perhaps not.
Last edited by protagonist on Mon Mar 11, 2013 5:05 pm, edited 1 time in total.

linguini
Posts: 260
Joined: Tue Oct 16, 2012 2:49 pm

Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by linguini » Mon Mar 11, 2013 12:46 pm

I am not a lawyer and this is not legal advice, but...

By state law, when you file for divorce in California, you have to file a petition claiming that you are seeking the divorce because of one of two options: "irreconcilable differences" or "incurable insanity", the definitions for which are laid out in the family code and neither of which applies to a marriage in which the married couple is seeking tax relief but intends to remain a de facto married couple for all other intents. I find it doubtful that you would get prosecuted for lying on this petition, but at the same time, it appears that it's not technically legal to get divorced that way, and probably also not technically legal to file as single after a divorce that you know is legally invalid, and the bogleheads forum isn't supposed to provide advice on engaging in illegal activity, so there's your answer. (Incidentally, yes, you would pay less in taxes if you got a divorce. It's just not legal for you to do it. It's essentially an attempt to defraud the government.)

Family code section 2310-2311 (http://www.leginfo.ca.gov/cgi-bin/displ ... =2310-2313):
2310. Dissolution of the marriage or legal separation of the
parties may be based on either of the following grounds, which shall
be pleaded generally:
(a) Irreconcilable differences, which have caused the irremediable
breakdown of the marriage.
(b) Incurable insanity.



2311. Irreconcilable differences are those grounds which are
determined by the court to be substantial reasons for not continuing
the marriage and which make it appear that the marriage should be
dissolved.

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Cut-Throat
Posts: 2011
Joined: Sun Oct 17, 2010 9:46 am

Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by Cut-Throat » Mon Mar 11, 2013 1:03 pm

I did not make that quote in your post....Please Correct!
Last edited by Cut-Throat on Mon Mar 11, 2013 5:23 pm, edited 1 time in total.

protagonist
Posts: 5217
Joined: Sun Dec 26, 2010 12:47 pm

Re: "Strategic divorce" for tax-purposes for 2 physicians

Post by protagonist » Mon Mar 11, 2013 5:06 pm

Cut-Throat wrote:
protagonist wrote:
I did not make that quote in your post....Please Correct!
My sincere apologies, Cut-Throat!!! Really. One of these days I will get the quote function thingie right. I corrected the post. (hanging head....)

-Protag.

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