5 Legal and Financial Risks of Unofficial Marital Separation: Why a Formal Interim Agreement is Crucial

In my practice as a Mediator and Collaborative Divorce attorney, I frequently encounter couples who have been living apart for extended periods without a formal legal separation. While this may seem like a simple solution, many couples discover years later when one partner decides to file for divorce that the lack of an interim agreement creates legal, financial, and emotional challenges.

Here are 5 common issues I’ve seen arise when couples separate unofficially:

1. The Impact on Spousal Support

Once a couple starts living separately, a new “status quo” begins to take shape. Over time, the lifestyle of the lower-earning spouse can become the standard for spousal support moving forward. This means that the longer a separation lasts without a formal interim agreement, the more challenging it may become to determine fair financial support.

2. Ongoing Legal and Financial Union

A non-legal separation doesn’t necessarily end the legal financial connection between spouses. This can mean that any income earned or debt incurred by either party during the separation may still be considered part of the marital estate. Without legal separation, it becomes harder to fully separate your finances.

3. Overlooked Financial Support

A common issue for the higher-earning spouse is that the support they have provided during the separation may not be recognized under the law. Without an interim agreement, these contributions can go uncredited, creating additional complications in negotiating a divorce settlement.

4. Communication Breakdowns

Once spouses begin to live apart, communication will often deteriorate. The lack of clear communication will make it more difficult to negotiate a separation agreement, especially if both parties have moved on emotionally or begun new relationships.

5) Waste of Marital Assets

If one spouse begins spending money on a new partner, it can be considered “wasting marital assets.” This can complicate future divorce proceedings, with one spouse potentially requesting reimbursement for the money that has been spent on a new partner instead of the shared marital estate.

A Real-Life Example

I recently worked with a client who had been supporting her husband for 10 years after moving out of their shared home. Though they were living apart, she continued to provide financial support through credit card access and paycheck deposits into a joint account. Despite both parties moving on emotionally and starting new relationships, the underlying hurt and guilt lingered.

When it came time to negotiate a settlement, I had to explain that her husband was legally entitled to expect the same financial support she had provided during their separation. This was a hard pill for my client to swallow. However, she ultimately agreed to provide her husband with significant real estate holdings she had acquired during their separation to reach a settlement.

Her reasoning for this generosity was simple:

“I know I gave him more than I needed to, but I was ready to finally move on with my life. I decided it was better to give my money to him than to our lawyers.”

Protect Your Unofficial Long-Term Marital Separation with an Interim Agreement

If you’re considering separating from your spouse, even if you don’t intend to officially divorce in the near future, it is important to address the legal, financial, and personal aspects of your arrangement as soon as possible. Partnering with a Mediator or Collaborative Divorce attorney to create a written interim agreement before separating will provide a solid foundation for both parties. This approach helps you move forward with confidence and focus on the future.

At Vacca Family Law Group, we are dedicated to helping couples find practical and respectful solutions during separation and divorce. If you are ready to take the next step and protect your financial and personal interests, our team is here to guide you through the process. Call us today at (646) 502-8591 or contact us online to schedule your free introductory call. Let us help you understand your situation and take the necessary steps to safeguard your future.

Vacca Family Law Group is located at One Grand Central Place, 60 E. 42nd St., Suite 700, New York, NY 10165.