Divorce and Filing Taxes: What to Know Before You File
Divorce and Taxes. Two subjects that can get messy if they aren’t properly handled. All by themselves, they are a force to be reckoned with. Dealing with the two together is an entirely different monster. In special cases like this, it’s best to leave it to the professionals to handle your financial tax situation in the unfortunate case of a divorce or separation.
Considering Hiring a Tax Consultant as Your Tax Mediator
Matters like this can be emotional, and when emotions are involved, it can sometimes be a challenge to think clearly and rationally. Hiring an experienced tax consultant that you and your estranged spouse both agree on is the best solution. Your tax consultant can operate as your mediator and help you determine the necessary information needed to file for the upcoming tax season:
- Filing Status
Divorce proceedings can be quick, but then again depending on how long a couple has been together, if they have any children, if they’ve built a business together, stocks, bonds, retirement savings, etc., all of this needs to be taken into consideration and oftentimes it’s not an overnight process. So during such transitions, while a couple might be separated, they’re divorce isn’t legally final.
So what does this mean when the tax season rolls around?
You’d most likely have to file “Married Filing Separately”.
That sounds complicated.
But it doesn’t have to be for you.
Success Tax Relief, a tax relief firm based in Texas has a team of tax accountants and attorneys, CPA’s and tax preparers with a total of over 30 years of experience ready to assist you through this trying ordeal. We service small and mid-size businesses, entrepreneurs and individuals with tax situations of any kind. We provide professional tax services all around the country with a small town feel.
To give you a kick-start on what you and your estranged spouse need to know about tax filing, Success Tax Relief is providing 3 good tips:
- Keep Track of Child Support and Alimony Expenses
Both parties should be responsible for the amount of money paid and collected for child support and alimony. Even if these payments are tendered in a lump sum, it’s important to keep a recorded account of exactly how much each account is being paid. You’ll be expected to know this when the tax season rolls around.
- Which Party Will Claim Dependents?
If you and your spouse have not decided this, and the courts haven’t either, then don’t spend too much time arguing about it, less you end up filing your taxes late and paying a penalty fee. Let the professionals at Success Tax Relief consult you as to what the best possible outcome for both parties could be.
- Who Will Get to Write Off the Legal Fees?
This type of information can get a little messy too as some separated couples might still share the same bank account. Here again, if the courts have not decided for you, Success Tax Relief has tax lawyers on hand to provide you sound consultation.
There is much more you need to know about divorce filing and taxes. If you’re interested in learning more, contact the professionals at Success Tax Relief for a free consultation today online or call us directly at 877-825-1179.