Want to Save on Taxes? Consider a Divorce!

Oh, the irony: President Biden’s American Families Plan could make divorce more appealing for some high-earning married couples. The tax plan amplifies the marriage penalty, so if you were already thinking about splitting up, now may be a good time.

An older man looks up from papers with an enigmatic smile on his face as his wife stands in the background.
(Image credit: Getty Images)

Over the last year, matrimonial lawyers have reported an uptick in clients seeking information about divorce. Additionally, divorce-related keyword internet searches are up by 11%, with nearly twice as many people searching “file for divorce online” and 14% more people typing “I want a divorce,” according to data analytics company SEMrush, since the onset of COVID. These couples seeking divorce report that spending most of 2020 being cooped up together, 24/7, exposed deeps cracks in their marriage.

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Stacy Francis, CFP®, CDFA®, CES™
President & CEO, Francis Financial Inc.

Stacy is a nationally recognized financial expert and the President and CEO of Francis Financial Inc., which she founded 15 years ago. She is a Certified Financial Planner® (CFP®) and Certified Divorce Financial Analyst® (CDFA®) who provides advice to women going through transitions, such as divorce, widowhood and sudden wealth. She is also the founder of Savvy Ladies™, a nonprofit that has provided free personal finance education and resources to over 15,000 women.