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March 28, 2008, Newsletter Issue #108: Consequences of Filing Divorce with Regard to Taxes
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Tip of the Week
If it appears that divorce is the outcome of a marrital relationship, the parties will be wise to consider all the ramifications involved, even that of the tax affect. Filing divorce and filing tax returns can be done in such a manner to benefit both parties. For example, someone filing a tax return of married filing jointly with all the deductions of home ownership, etc. may net the parties a larger return to split equitably than if both parties file separately. Especially if there are children involved, those deductions may make a large difference in what the parties have to pay in taxes. Carefully consider timing and options when it comes to filing your taxes the first year of your divorce.
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