Does Legal Separation Protect Me Financially?

A legal separation can protect one or both spouses financially. When couples marry, they may bring property and debt into the marriage. During the marriage, spouses may acquire additional assets and liabilities, separately or jointly, and share ownership and financial obligation. If a couple decides to end their relationship but wants to remain married, they may seek a legal separation. For financial, legal, social or religious reasons, spouses may not want to get a divorce.

Filing for legal separation in Oregon addresses and resolves some of the same financial issues as a divorce, including benefits, property division and distribution, child custody and support, parenting time, and spousal support. A restraining order goes into effect against both spouses after a spouse files for legal separation. The order protects the parties financially by preventing them from taking harmful or hostile actions regarding insurance premiums, insurance beneficiaries, property and money. Spouses cannot cancel, modify or stop payment on insurance premiums that provide coverage to the other spouse or minor children during the legal separation. A spouse who carries insurance policies covering the other spouse and their minor child cannot change the beneficiaries or covered parties until the dismissal or termination of the separation. Spouses cannot transfer, conceal or dispose of property the other spouse has an interest in without the other spouse’s written approval. Legally separated couples cannot make extraordinary purchases and expenditures unless they give their spouses written notice and accounting of purposes and amount.

In some marriages, one spouse may be the sole financial provider or higher wage earner. The other spouse may be the homemaker or has a lower income. Provisions in the judgment for legal separation may provide spousal support for financial assistance. It may also award child support to the noncustodial parent for the care of the child. Like in a divorce, the judge can decide how to distribute property between spouses in a legal separation case. The parties submit a list of their assets and debts. The court determines whether the property is separate or marital property. The judge distributes the marital property to the spouses equitably but not necessarily in an equal amount. Legal separation protects a spouse financially because the separate property remains with the spouse who owns it, including property owned before marriage, received as a gift, or acquired through a will or intestacy.