• Some states require a legal separation before you can file for a divorce.
• Other states recognize a legal separation, but do not require it.
• A few states neither require nor recognize legal separation.

Obviously, it’s important to get the advice of a divorce attorney in your state to determine if a legal separation agreement is a viable option for you. 

When might a legal separation be a better financial choice than divorce? 

Legal separation may be a good financial option for you if you need to:

• Meet the 10-year requirement for social security benefits. If a marriage has lasted at least 10 years, a divorced spouse who has not remarried is entitled at age 62 to social security benefits. Because of this law, many people who have been married for seven or eight years will separate until they cross the 10-year threshold – then, they get divorced. 

• Continue receiving health insurance benefits under your husband’s plan. Naturally, once a couple is divorced, most employer health plans will no longer cover the employee’s ex-spouse. Separating, but not divorcing, may solve that problem –although you’ll have to carefully check the fine print in your husband’s employment benefit package to know for sure. Some employers view a legal separation the same as a divorce and will deny benefits accordingly. 

• Take advantage of potential tax benefits from filing jointly. Many couples assume they will save money by filing joint tax returns, so they separate, but do not divorce, in order to preserve that right. In addition, there also may be estate-planning implications, such as preserving the marital deduction. However, please don’t let assumptions like these lead you into trouble. In other words, whether or not you are considered married or unmarried will depend upon complicated laws at both the state and federal level. You need to ask your attorney and/or tax advisor whether your current legal status meets the definition of a decree of separate maintenance.