We’re not sure we’re getting divorced, but we’re actively discussing the possibility. We have one big problem that’s tearing us apart and that we just can’t seem to resolve . . .
Our taxes are higher by roughly $8,000/year because we’re married. It looks like this number is likely to increase over time as well.
This is a back-of-the-envelope calculation and it doesn’t take into consideration other tax benefits that we would get if we were divorced. For example, we’ve done some work on the house that one of us could claim some portion of but we can’t collectively claim at all – I haven’t counted this in the $8,000 figure. Additionally, some of the benefits are hard to monetize, for example, one of us would be able to contribute to a Roth IRA if we were single, whereas since we’re married, neither of us can.
My wife’s benefits are bad and mine are good, so we’re going to do some analysis to see how much it would cost to buy decent benefits through her company. If the law changes to allow “domestic partners” to get benefits, we’ll get divorced immediately. Interestingly it looks like the laws are written such that benefits can only be shared by “same-sex” partnerships, meaning that gays get all the benefits of marriage (i.e. the ability to share benefits) with none of the drawbacks (i.e. higher taxes).
If we get divorced, we’d continue to live together and we’d still consider ourselves married – we’d just be legally divorced (the legalities of marriage have long since stopped being meaningful anyway).
So, to review, the tax structure incentives: same-sex partnerships over being single over being married.
Our country is retarded unlike some other countries.