Changes in Tax Status After Divorce

For many couples, few things provoke unnecessary fights as easily as money issues. If you and your spouse are considering a divorce, and you filed your taxes jointly during your marriage, a divorce fault and no fault divorce may mean a change in tax status. Although sorting out all the threads of your finances can be a very complicated process, you can prevent needless fights by seeking the help of a divorce lawyer.
Most married couples today both hold down full-time jobs. Combining two working incomes can be a great way to maximize your spending power, and in some cases it can have tax benefits. Although in previous years joint filing could mean falling into higher tax brackets, the brackets have since been adjusted to favor married couples filing together. In addition, filing together means sharing deductions, which can mean even more tax relief.
But if your relationship becomes strained, and divorce looks like it might be the best option for you, a tax situation you previously took for granted can change significantly. Filing jointly typically means averaging your incomes, which can make a higher-earning spouse’s wages fall into a lower tax bracket than they would filing as a single person.
If both spouses have a similar paycheck, the shared deductions and (in some cases) married tax credits might be the primary incentive for filing together. Deductions and international human rights law pdf credits can certainly make a big impact on your tax return, but your income may or may not change tax brackets once you and your spouse have finished your divorce.
The best course of action for you and your spouse depends entirely on your unique financial circumstances. Your earned income is a major factor, but there can be other tax issues-such as deductions for medical bills-that can affect your returns. Whatever the tax-related changes you will each experience after your divorce, preparation is key to ensuring your finances don’t suffer from unforeseen problems.
The only way to make sure you are taken care of is to consult an expert. Beginning the process early can save you and your spouse a great deal of frustration and unnecessary conflict over your finances during and after your divorce. By working with an experienced divorce lawyer, you can make sure your divorce works in the interests of both of you, even if your tax status changes.

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