We are considering getting divorced for tax reasons. We live in Washington, a community property state.
We filed married filing separately to be able to keep one party's income based repayments on their student loans as low as possible. The other party did not benefit and in fact had to lose out on some tax advantages due to this filing status.
Since there is $110K in student debt and no option to pay it off quickly (neither party is wealthy), we are anticipating having to continue to file married filing separately for many, many years to keep the income based repayment income figure low for the party working to pay off the student debt - and thus the other party will lose out on their tax advantages for all those years, because married filing separately in Washing state is probably the most disadvantageous filing status one can choose.
The question is in regards to insurance implications. If a couple divorces for tax purposes, can the other person remain covered by a corporate health plan in the same manner?
Any advice or experience around this topic would be sincerely appreciated.
Thank you