If you’ve recently been through one, or if you know you’re heading for divorce in the near future, it’s good to know where you stand financially.
Divorce itself is often stressful and time-consuming; and it is both emotionally and physically exhausting. In the midst of so many emotions and agreements and with so many other details on your plate, people often forget to think about how their tax situation may change. Depending on the particulars of the divorce, there may be complicated tax implications involving child support, alimony, the division of assets and other divorce-related factors.
It’s probably not something you’ve really thought about, but the last thing people need in this situation is financial advice that doesn’t give them the best options or the most positive outlook on their tax and financial situation once the divorce is final. This side of things should be handled in the most professional and disciplined way possible in order to prevent more stress in a situation that is already stressful; and you want to ensure you have a company that has your best interests at heart during this trying time in your life.
There are number of tax-related issues that you need to be aware of when you’re in the process of getting divorced, and it pays to have an expert on your side who can help you navigate toward the best possible outcome. That’s where we come in. Our professional team has the right experience to help you through one of the toughest times in your life. We provide you with the right advice and assistance to ensure you are always one step ahead.
This may have provided certain advantage at tax time; but now the situation has changed, and it’s not always easy to know exactly what the changes mean. You could be paying too much tax, or too little, depending on your circumstances before and after the divorce.
Your new tax filing status will depend on the date on which your divorce was finalized, custody agreements involving children, and other factors. If you don’t see the situation clearly, you might miss out on important tax benefits or incur financial consequences.
Getting your status right is important.
Things can get complicated in a hurry. This is never an ideal situation for divorcing couples, and definitely not for children. For example, it’s important to know about the tax liability differences between child support and alimony. Not knowing how to leverage tax laws to help your situation can make some things more difficult in the long run.
Most divorcing couples don’t really understand how the IRS works. The IRS will look at various aspects of their divorce and financial agreements, and how to set up taxes in a way that follows the rules, while also maximizing tax advantages according to state and federal laws. Our divorce tax services will clarify and consolidate your tax situation and give you the best financial options during this challenging time so you have one less pressure.
Chances are, you already know this. But do you know what will happen to that exemption after the divorce? It could be that the exemption shifts directly to the parent who has custody. And in cases of joint custody, the tax exemption may go to the parent who spends more calendar days with the child. In some cases, the nature of this tax exemption can be determined ahead of time by a legal agreement between the divorcing parties.
There are other tax exemptions that may apply in your particular case. Depending on the tax deductions you’re able to make, and other pertinent details, you’ll need to file specific forms with the IRS to fulfill your tax obligations. There are many variables in this area of divorce and enlisting our professional help can allow you make the best of the situation.
Many people forget to think about how their tax situation will change (until after the fact). Others lose sleep about the various financial agreements and requirements of the divorce — and how the IRS will respond.
Our divorce tax services will take your entire situation into account so you don’t have to lose any more sleep worrying about it. We’ll look at all the financial details, payments, and any financial requirements. Then we navigate toward the most favorable outcome, using our detailed knowledge of New Jersey and federal tax laws and regulations.
We’ve helped many divorcing individuals clarify their new tax situations so they can come through divorce with greater control over the financial situation. The key is that you don’t get caught out with more stress than you need at this trying time of your life.
It’s never too early to consider your financial situation, so if you’re planning on filing for divorce for a relationship that has simply hit the end, it will only benefit you to get in touch with our team as early as possible to find out your options. If you’ve already started the process, or if your divorce has already been finalized but you’re yet to consider tax time, we can work with you and for you to ensure you have peace of mind and a clear direction when it comes to your new tax situation. Give us a call today.