How Will The Divorce Affect My Taxes?
Divorce and marriage dissolution includes many factors, most of which can be complicated and overwhelming. No one goes into a marriage expecting it to end, and very few people realize how much is involved in a divorce. The tax implications for both parties when the marriage is over are just one of the many areas you’ll need to consider. When dealing with divorce and taxes, you need a lawyer with experience in both fields.
Taxes and Your Marital Status
You wouldn’t think so, but your marital status at the end of the year may affect your taxes. And there is a difference between the different statuses. Whether you are just beginning the divorce process, legally separated or just living apart, or completely divorced, you might want to consider how the divorce or separation could affect your tax situation. In this case, you will need more than just the assistance of your accountant.
Filing Taxes during a Divorce
The divorce process isn’t usually completed overnight. There is a good chance you’ll find yourself in the middle of divorce proceedings at the end of the year. You still have to file your taxes even if your divorce seems to be in limbo. However, you will have to determine if it’s best to file a joint return, which both parties must agree to, or married. Even if you are separated or have a temporary order regarding child support and alimony, you are considered married until you have a final court judgment that officially ends your marriage.
Children and Tax Credits
Other aspects of a divorce that can affect your taxes are the children involved, child support, spousal maintenance, and many others. Because the divorce likely involves the separation of not just the marriage but the assets and debts and the care of any children involved, you can expect these areas also to become part of filing taxes now and in the future. There is a good chance you will lose many of the credits and benefits you may have experienced when you were able to file as a married couple, once the divorce is final.
Detailed Records are Crucial
Regardless of the elements involved in your particular divorce, when tax time rolls around, it’ll become a much simpler and efficient process if you have kept detailed records. Even during the divorce, it’s important you keep track and account for expenses, payments, and income that takes place. Your records may include receipts and information you typically keep for tax purposes, as well as those you track yourself. Your divorce lawyer can help you figure out exactly which expenses and costs you need to keep a file on and the best methods to do so to ensure a smoother process when filing your taxes.
Divorce and taxes are complicated procedures by themselves that become even more difficult to manage when you combine the two. Because a divorce can involve so many aspects of your finances, it’s important to have an attorney in your corner with experience in marriage dissolutions and taxes. If you are considering a divorce or going through the divorce process, contact The Law Office of Laurence J. Brock online or call (909) 466-7661 to make sure all areas are covered.