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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 …