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Divorce, Taxes, and the Tax Bill

In Separation & Divorce by Sarah Hink

When you get divorced, there are many moving pieces you must juggle. Who is going to care for the children, where are you going to live, is property going to be divided fairly, how are you going to make ends meet? This is all in addition to the emotional trauma that comes with the end of a marriage. Unfortunately, a divorce begets questions about another dreaded subject matter: taxes. Despite all of the feelings that come with the mere mention of taxes, it is well worth your while to understand how taxes and divorce interact. This is because there are potential financial benefits that come with taxes and divorce. However, you should also remain mindful of submitting proper and accurate tax returns. The absolute last thing you want following a …

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Taxes and Divorce

In Separation & Divorce, Wealth by Sarah Hink

Divorce and taxes are two topics that few people like thinking about, much less reading about. In fact, many people depend on professional tax preparers or spouses to prepare their taxes and don’t give it very much thought. Nevertheless, if you are considering a divorce, it is very important to start thinking about taxes and to understand that there are significant tax consequences to consider. When you become divorced, your tax filing status options change. Therefore, you should speak with a tax professional to consider the financial implications of filing as single, married, or head of household. For example, you can still file as married for a tax year so long as your divorce was not finalized as of December 31st of that year. Otherwise, you are considered divorced for …

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The Tax Implication of Divorce

In Separation & Divorce by Elizabeth Stephenson

Divorce is complicated. Beyond the emotional toll and uncertainty that comes with it, there is the minefield of separating a couple’s property. Your finances and property have been intertwined for years. In addition, there are the issues of child support and alimony that have to be settled. Ultimately, when the all issues have been resolved and there is a divorce decree, there is one more matter to resolve: how your divorce impacts your tax return. Tax Status — Your tax status is based on your marital status at the tax-filing deadline. So if you are not yet legally divorced yet, you will still need to file a joint return as a married couple. If you are legally divorced, you should file as single or head of household. Child as a …

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How Does Divorce Affect Filing Taxes?

In Separation & Divorce, Wealth by Lisa Eyrolles

If you are going through a divorce, taxes might be the last thing on your mind, and rightly so. But tax season is upon us and your divorce could affect how you file your taxes.  As we head into this year’s tax season, here are some things to consider: Filing Status. Will you file married filing joint (lower tax rate) or file married filing separate (higher tax rate and less tax benefits)? Who Will Claim the Children’s Exemption? If you are the custodial parent and you support the child more than half the year than you are entitled to take their exemption, but it is possible for the non-custodial parent to claim the exemption as long as the custodial parent signs a waiver pledging that he or she won’t claim …