Divorce And Taxes

The taxes you’re required to pay when you’re married may not be the same that you’ll be required to pay when you divorce. Here are some tax tips to consider. And remember, a financial consultant can be your best investment at this time.

Have the divorce final by year end.

If you’re legally married at year end, figure out if filing jointly or separately be less costly.

Learn about “tax basis” to understand how much tax profit you may have regarding assets.

Protect yourself from your spouse’s outstanding tax liabilities.

Keep a record of your legal expenses.

If you are both over 55 selling your house after your divorce may increase capital gains benefits.

Selling your house before your divorce may work capital gains to your benefit.

Sell your house to your spouse while still married to take advantage of Internal Revenue Code 1041.

Keep a record of your child’s visits to help prove your eligibility to claim a “head of household” filing status.

Learn how to make your alimony payments tax deductible.

Consider making child support alimony in order to save taxes.

Make sure you’re paying proper taxes when you’re paying alimony.

Research the possibility of an alimony substitution trust.

Discuss your finances and proposed financial arrangements with an accountant before your divorce is final.

Have a financial consultant or account look over your finances and offer suggestions.