How Can Divorcees Avoid Tax Problems?

A divorce can be a long, drawn-out process that requires legal and personal settlement from both parties. After a marriage has ended, other concerns must be taken into account such as the filing of taxes. To avoid an IRS audit, divorcees must take the time to look into this aspect.

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Some legal counselors suggest that couples filing for divorce must take into account child support claims, the splitting of assets, and payment of liabilities. The help of a divorce mediator or a legal counselor may be needed especially if the couple could no longer see eye-to-eye. In these settlements, the benefits and the payments should be made fair and square as much as possible.

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After the change of status, an individual must be ready with supporting documents that prove the marriage’s dissolution. Having a copy of the divorce decree might make matters easier. However, considering the person as single or married depends on the time when the divorce was finalized. For example, if a divorce settlement has been finalized on December of the current year, the divorcee is now considered single for the succeeding months. The individual may now file as an individual or as head of household.

If a divorce is still being processed, the two parties may still need to file as a married person filing jointly or as a married person filing separately. As long as the decree hasn’t been released, the law considers these two individuals to be still married. At this point, it is also necessary to settle the taxability of alimony, child support, property and retirement transfers. The help of reliable tax lawyers is necessary to iron these details out.

It is safe to cover all bases with regards to taxes to avoid tax problems after a divorce. This is also to ensure that the two parties will be free from unnecessary obligations to the other after the split.

Approaching all tax-related dealings with faith-based philosophy, honesty, and integrity, Tax Tiger has been standing up for clients with IRS issues since 2002. It is a member of the National Association of Tax Resolution Companies and is a trusted name in the industry. Learn more about the company through its official website.