Divorce and taxes

Board Certified Family Law Specialist Matt Arnold answers the question: “What happens when a person’s income is not guaranteed and fluctuates from year to year”.

When you are dealing with a divorce, it can be hard to feel like you are ever fully prepared. Given the complexities of the divorce process and the emotional issues involved, few people can honestly say they’re equipped to face every challenge that comes along. That is why it is so easy for things to fall through the cracks, especially issues that you did not even know to look out for. One example of an important problem to be aware of concerns tax trouble related to the divorce. To learn more about how to avoid creating tax issues for yourself, keep reading.

Matthew R. Arnold of Arnold & Smith, PLLC answers the question “How long does getting a divorce take?”

That special time of year is looming—April 15. That is not the date on which Santa Claus comes tumbling down the chimney with a slew of nice gifts to leave under the tree. Quite the opposite: April 15 is the date every year on which Americans pay their dues to Uncle Sam and to their respective state governments.

Not all state governments impose an income tax, but this state (North Carolina) does, and the federal government expects its dues. Aside from whatever complications one has experienced in the past with figuring and paying taxes, if one has recently divorced, one should beware, because new complications may be aplenty.

Even if one has not yet divorced but is engaged in the divorce process, tax time could prove especially troublesome. What, for instance, is one’s filing status? Is one married and filing jointly or married and filing separately? And, importantly, who is the Head of Household for tax purposes?

Unfortunately, answering these queries may require not only conversation with—but also the cooperation of—one’s ex or soon-to-be ex. This could prove vexing, and especially so if the ugliness if a divorce proceeding is looming over the erstwhile tedious task of preparing taxes.

Articles Tagged with Divorce and taxes

How to Avoid Tax Trouble During Divorce

Soon-to-be divorced, divorcing or recently divorced? Beware the tax man!