When couples are deciding whether and how to end their marriage, very few consider the option of a legal separation. This may because of the lack of finality: a legal separation will not actually end a marriage. But for couples who are living separately, especially for several months or years, it can be very beneficial to make your split formal with a legal separation.

If you separate informally without a legally binding agreement, you will remain liable for your spouse's debt. This means that you may end up on the hook for large credit card expenses or other bills that result from irresponsible purchases made by your spouse. Further, your spouse will still have access to your finances and he or she may spend money from your account or fail to pay bills and debts, causing irreparable damage to your credit score. Finally, your spouse may fail to maintain the family home or otherwise decrease the value of your marital assets.

Aside from the financial aspect of a split, there are several other reasons to get a legal separation while you decide whether to legally end your marriage, or if you have chosen not to divorce for religious or other reasons. In a legal separation agreement, you can set out a legally binding child custody and parenting plan, and establish child support and alimony payments.

In addition, there is an extra benefit of doing the extra work of creating a separation agreement. If you ultimately decide to divorce, that agreement can easily become your divorce settlement agreement, making that process much faster and simpler.

Source: Forbes, "Legal Separation or Divorce: Which is Better Financially?" Jeff Landers, Jan. 10, 2012