It is tax season and you just received your relevant form for filing. Most parties understand that a pending divorce does not excuse the requirement to file taxes. The tricky part in this situation is the HOW.
There are different filing options during a pending divorce, including:
Married filing jointly;
Married filing separately; or
Single under certain circumstances.
It is important to communicate with your spouse about how each of you will be filing to prevent future issues. Most of the time parties financially benefit from filing jointly. This point is often overlooked due to the breakdown of communication which typically accompanies a deteriorating relationship. To be sure, consult a tax professional who can advise you and your spouse on what benefits you both monetarily.
Some parties file separately if it benefits them financially, their spouse has pending tax or credit issues, or because inter-party communication has become hostile.
Regardless of the reason, it is important to keep in mind that any return or debt is marital and should be appropriately addressed to prevent further issues.
For example, if you choose to file under the status of Married filing separately and have minor children, discuss who will be claiming the child(ren) for that tax year, as both parties cannot file separately and claim the same child. If this occurs, one party, typically the party filing last in time, will receive a penalty.
The best action to take is to speak with your spouse and consult with a tax expert. If speaking to your spouse is not a viable option, it is important to have an attorney who will. Having someone advocate on your behalf regarding such issues can make an already tedious process run smooth and prevent future headache. Contact us today at
407-278-6718.