How We Help with All Financial Matters Associated with Your Divorce
Our goals for you include doing as much as we can to help both parties navigate the difficult financial waters that rise during a divorce. Mediation is all about doing right by everyone involved, and we care about putting you in a good position post-divorce.
That's why we invest significant time in financial planning. We provide your attorney-mediators -- and you -- with resources that make finding a fair and sustainable solution as simple as possible.
This is one of the elements of our practice that our clients most appreciate. Our uncontested divorce process is designed to find the solutions to difficult problems.
Our Financial Planning Process
During your mediation sessions, our attorney-mediators will utilize sophisticated financial planning software. This will provide us with important guidance on the difficult economic questions and help everyone make wise, informed decisions.
With this software and our attorney-mediators' unique experience in the field of family law, we can chart a course that leaves both parties in a sound financial state. We can account for just about any financial issue using this software, ensuring your final divorce agreement addresses every aspect of your finances.
Tax Implications Alimony and Filing for Divorce
One of the considerations you should keep in mind when filing for a divorce is how such a decision will affect your tax burden next April. Of course, this isn't to say that you should decide to end a marriage or not based on your tax bill. But proper timing can allow you and your spouse to make the right decisions while saving both of you quite a bit of money.
The main concern when it comes to divorce and the resulting tax implications is timing. Your ability to file as married, head of household or single depends in large part on when your divorce was finalized.
Under Colorado law, a court must wait a minimum of 91 days from the filing of your petition before entering your divorce. This is important because of the way the IRS handles your filing status.
For filing purposes, the IRS will consider you divorced for the entire tax year even if your divorce was finalized quite late in that year. For example, if your divorce is finalized in November of 2015, you will be able to file as divorced for the entire year, even though you were actually married for 10 months of the year.
This means that if you file for divorce after October 1, it will not be finalized until January of the following year. As a result, you'll have to file a joint return as a married couple for that calendar year.
If you file early enough, you might be able to tell the court whether you want your divorce to be finalized this year or next. This will allow you to file with a status that is most advantageous to you and your financial situation.
Of course, whether a married or a divorced return is right for you will depend on the unique nature of your estate. Split Simple's attorney-mediators will carefully review all relevant financial documents and make a recommendation that serves the best interests of all parties in the divorce.
If you're looking for a smarter, simpler and more cost effective divorce process, please contact Split Simple using the form on this page or call (855) 665-9920 today to schedule your free consultation.