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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 …

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Financial Guide To Navigating Life’s Changes

In Wealth by Chauncey Minnick

The only constant in life seems to be change, and navigating the way forward can be confusing and complex.  Divorce and splitting of financial assets can be one of the most challenging changes in life, however with a little planning, preparation, and a few financial tips you can avoid mistakes and gain some peace of mind. Spitting Investment Assets It might seem like your primary residence is the biggest asset in a divorce, but don’t overlook investment accounts like 401ks, Traditional and Roth IRAs, etc.  These accounts can hold hundreds of thousands of dollars, and serious financial implications if divided incorrectly.  First, 401ks and other tax-deferred accounts should be specified in a proper legal documentation prepared by your family law attorney.  Second, IRAs can be transferred tax-free through IRA to …