The Law Offices of James A. Cuddy, LLC

Do not neglect tax questions during divorce

The federal income tax filing deadline is far enough away that you may not be worried about what to do about filing your return today. However, six weeks can go by in the blink of an eye, especially if you are in the throes of a divorce proceeding.

Indeed, you may not know whether you will be expected to divide a windfall from your tax refund, or whether you will be required to split the amount you may owe. But while you are preparing for your divorce, it is also prudent to prepare for your post-divorce life, and preparing for tax season is part of that. With that, the following tips should be helpful. 

Learn about bonuses – By now you should know about the end-of-year bonus that you or your spouse received and whether that income is taxable for last year’s earnings. Knowing how it will apply is essential so that you do not run into any surprises.

Gather financial statements – This is particularly important if you have investments that have posted significant gains over the past year (or since you made the initial purchases). Why is this? It is important to know whether you will be subject to capital gains taxes should you have to sell property as part of your divorce settlement.

Be wary of exemptions – While you may want to separate from your soon-to-be ex-spouse as quickly as possible, do not neglect the benefits of filing jointly for tax purposes. There are some exemption amounts that are much greater for married couples than for singles.  

No Comments

Leave a comment
Comment Information

The Law Offices of James A. Cuddy, LLC
525 Bridgeport Avenue, Suite 201 Shelton, CT 06484
· Toll Free: 866-785-4409 · Phone: 203-583-8256 · Fax: 203-513-8673 ·  Shelton Law Office Map

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.