If challenges in your marriage have been giving you trouble lately, but you are not ready to divorce, you may be asking yourself, “Does a legal separation in California protect you financially?” The concept of legal separation has become widely popular in California, as it gives people certain advantages of a divorce without making it official. Understanding the financial protections a legal separation can offer can help you make a more informed decision.
Financial Protections During a Legal Separation
Based on the specific needs of your divorce, legal separation in California can provide certain financial protections that help keep you more stable as you navigate through this difficult life event. Some of the most prominent ways a legal separation can help protect your finances include:
Spousal Support
One of the largest financial benefits to take advantage of during a legal separation is to request spousal support. This is when a higher-earning spouse is required to pay the lower-earning spouse during their period of separation. This can help ensure that the spouse receiving the payments is able to maintain a similar standard of living that they became accustomed to. Factors like income and length of marriage help determine how much these payments will be.
Division of Property and Debt
Just like a divorce, both parting spouses will be required to divide their marital assets and debts as part of the legal separation process. California operates under the principles of community property law, which means that all property accumulated during the tenure of the marriage needs to be split equally between both parties. Engaging in this process can help prevent your spouse from taking more than their fair share of the marital assets.
Retaining Health Benefits
Another legal separation benefit that many parting couples take advantage of is to retain their health benefits. Some employer-provided health plans will allow both spouses to remain on the same plan, even after a legal separation arrangement has been established. This can save both parties a significant amount of money which would not be possible if the couple decided to advance through the traditional divorce process.
Child Support and Custody Arrangements
The legal separation process can also secure certain child support and custody arrangements that protect you financially. For example, the court will calculate each parent’s income and compare it to the child’s needs to establish a fair child support payment. This can prevent one parent from overpaying or put the other parent in an uncomfortable position where they are struggling to provide for a child’s basic needs on their own.
Can Legal Separation Prevent Financial Issues in the Future?
While legal separation is known to offer certain financial protections, it is not a tool that will solve every financial issue you have. Because both parties in a legal separation arrangement are still recognized as a legally married couple under California law, any future financial decisions made by one spouse could impact the other.
For example, if one spouse decides to apply for a new credit card after the separation happens, a creditor could still review the other spouse as responsible, too. This will happen depending on how the legal separation was structured. For example, if the new line of credit was taken out to pay for a previously shared asset, a creditor could attempt to try and collect any outstanding or delinquent debt from both parties.
To prevent this from happening, it’s important to carefully outline in the separation agreement how every asset and debt will be handled. While some risks may still remain, it offers an extra layer of protection by making it clear who is responsible for each financial obligation. Consult with an experienced attorney to review all documentation before signing to maximize the amount of financial protection you can ahead of time.
FAQs
Q: Do I Have to Financially Support My Spouse During Separation?
A: Yes, most legal separations will require the higher-earning spouse to financially support their partner once the two are living on their own. This is done through the state’s spousal support programs, otherwise referred to as alimony. The intent is to ensure that a lower-earning spouse has the resources they need to support themselves independently after the split. If a couple cannot come to agree on these payments alone, the court is able to mandate the payments.
Q: Am I Responsible for My Spouse’s Debt if I Am Legally Separated?
A: Whether or not you will be responsible for your spouse’s debt after a legal separation depends on the details of your separation agreement. While California is a community property state where all marital assets need to be split equally, this can be adjusted in the terms and conditions of your agreement. As long as both parties agree, the agreement can state that both parties are responsible for their own debt they generate as a legally separated couple.
Q: What Are the Disadvantages of a Legal Separation?
A: While there are many positive protections that couples take advantage of through legal separation, some might find potential drawbacks that will not work well for their personal situation. For example, a legal separation does not completely sever financial ties in the way that a divorce does. Depending on how your arrangement is set up, you could still be impacted by the financial decisions your spouse makes.
Q: Can a Legal Separation be Reversed?
A: Yes, reversing a legal separation is a completely valid request as long as both spouses agree to reconcile their differences and return to their marriage. To make this happen, a request will need to be filed to the court to dismiss the original legal separation arrangement. After it has been dismissed, the couple is no longer bound by these terms. If the couple decides after living together again that they want to return to a legal separation arrangement, this can happen, too.
Contact Khalaf Law Group Today
If you are curious if a legal separation arrangement could work for you and your spouse, contact the attorneys of Khalaf Law Group today. We would be happy to explain what legal separation is and answer any questions you have to make the most informed decision possible about your next steps. Contact us today to begin.
