Important Things to Know About Taxes After Divorce
One of the most important tasks to complete when going through a divorce is planning for your financial future. A part of this is determining your tax outlook after the divorce is finalized.
Paying taxes is always at least somewhat complicated, but a divorce can make matters even more difficult. However, with the help of an experienced attorney, you will be able to navigate your taxes after your divorce without a problem. Below are a few issues you will need to consider:
If your marriage has not officially ended, you may file your taxes in several ways. These include “married filing jointly,” “married filing separately” or, in some cases, “head of household.”
You’re considered “married” or “divorced” based on your marital status on the final day of the calendar year. If you were single as of December 31, you were considered single for the entire tax year. If you are divorcing (but still married) as of December 31, you may file your taxes as married. This is typically the best option for both parties, as it offers the biggest tax breaks.
If you have children, it might be helpful to file as the head of the household if you are the custodial parent. This offers you lower tax rates and allows you to claim your children as dependents.
If you own joint property, you might wonder who is responsible for paying taxes on it. Any income from joint property is kept by the person who ends up with the asset, and so that person must also pay the associated taxes.
Legal fees connected to a divorce are not deductible — and neither are child support payments. However, alimony payments are deductible for the payer and taxable to the recipient, under certain conditions.
For more information on the various tax issues related to divorce, consult an experienced Long Island family law attorney with Bryan L. Salamone & Associates.