Orginally posted on the Lasky Law firm website this article offer very important information from an experienced Divorce Attorney in Jacksonville, FL.
When most people think about divorce, they think of the hassles and headaches associated with making child custody arrangements, splitting marital property and setting up two separate households. Most divorcing parties do not consider the tax consequences or what impact the divorce will have on each party.
Since 2010 is the first year that the divorce rate rose since the economic downturn began in late 2007, these considerations will be important to more people than ever before. In May of 2011, the U.S. Census Bureau issued a report noting that about 21 percent of men and 22 percent of women have divorced in their lifetimes, meaning that the tax issues arising from divorce are well-documented.
Marital Status on the Tax Return
A basic change to a divorced party’s tax return after divorce is the filing status. Whether filing as married for a specific tax year depends on the date of the entry of the divorce. When married filing jointly is no longer an option, divorcing parties must decide whether to file as single or head of household. The filing status is important for a number of reasons, including complications that can arise when the marital home is sold as part of the divorce proceedings. It is important to consult with an accountant or other tax specialist to ensure that all tax decisions are made timely and correctly.
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