If you’re going through a divorce, the last thing you may have on your mind is how your breakup will affect you and your ex-spouse on your next tax return. But whether you’re structuring a property settlement, choosing how to split up retirement savings or simply figuring out what your filing status is after you part ways, we can help make the transition easier.
Going through a divorce can be a very difficult time. A variety of issues such as division of property, custody of children and family support are significant and can impact your tax status for years to come. Be certain that the decisions you make to resolve these issues will have a huge tax impact. Ask your attorney or tax advisor how you will be affected by these decisions and how you can take steps to minimize your tax liability.
The IRS doesn’t make it a easy for you. A relatively simple issue such as determining the best filing status for you can be complicated. For that issue, the basic rule is that your marital status at the end of the tax year will determine what your filing status should be for that tax year.
Divorce and Taxes Articles
Can the noncustodial parent claim the child as a dependent on their tax return?
We have witnessed many situations where the noncustodial parent claims child on taxes. Can you do that? Is it a good idea? And how do I do that if we want to? Read More…