At Split Simple, we go beyond a lot of Denver divorce attorneys in our attention to the financial details of your divorce. Financial planning is a big part of what our attorney-mediators do. This includes an awareness of the tax implications of your divorce.
And this is a good time to talk about taxes, because we're reaching a critical point for tax planning. Why? It has everything to do with state and federal tax procedures.
First, you should understand that the IRS will determine your marital filing status based on whether you're married on December 31 of that year. So if you are married for 364 days of 2016 but a Colorado divorce court grants your divorce on December 31, you will be able to file as single for the 2016 tax year next April.
So why is this such an important time for tax purposes? Because under Colorado law, a divorce court must wait 91 days after the filing of your joint divorce petition to accept the petition and make it official. As a result, if you file your divorce after October 1, the IRS will consider you married for the 2016 tax year.
What this means for you will depend on your unique circumstances. In many cases, there will be significant advantages to filing separate returns. But in other cases, it might make sense to file as a married couple, in which case you can ask the court to delay filing your divorce until the New Year.
Our attorney-mediators will keep your unique circumstances in mind when working with you and your spouse. Finding a settlement that maximizes the financial advantages for both parties is our priority.
If you want an experienced attorney-mediator in the Denver, Colorado area with a comprehensive knowledge of relevant tax laws, please call Split Simple today at 855-665-9920 for a free consultation.