What Are The Tax Implications of Divorce?
Uncontested Divorce Mediation
Posted February 29, 2016
The simple reality of divorce is that it's fundamentally an economic matter. You may not be getting divorced because of money, but it would be unwise to go through our uncontested divorce process without thoroughly considering the financial implications of the result.
The tax implications are particularly important. The timing of your divorce can play a significant role in determining how much money you owe- or receive from- the IRS. And in the aftermath of a divorce, this money is nothing to sneeze at. Why not maximize your savings and minimize what you pay to Uncle Sam?
Under Colorado law, the state will wait a minimum of 91 days after you file your "Petition for Dissolution" to finalize your divorce (as long as you file jointly). In addition, the IRS will look at your marital status on December 31 of the relevant year in order to determine your marital status for the entire preceding year. Understanding these two important timelines can allow you to choose the best way for you and your spouse to file your taxes, especially for those couples considering a divorce in the last half of the year.
Is it better for you to file as Married? Single? Head of Household? This depends on your specific circumstances, and you can bet we'll keep those circumstances in mind throughout the uncontested divorce process.
We consider helping you understand these tax issues to be a crucial part of our job. We want both parties to leave on sound financial footing. Smart choices regarding your taxes and filing is an important element of this.
If you have questions about our uncontested divorce process in or around Denver, Colorado, and you're concerned about the tax implications or any other financial issue, please call Split Simple today at 855-665-9920 for a free consultation.
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