Tax, Divorce and Their Impact on Your Personal and Financial Life
If you are thinking of filing a divorce or in the middle of getting divorced, then you should consider some facts regarding taxes. Here, we have shared some tips that help you to make decisions about tax issues on the way to get divorced.
Transfer Properties and Hidden Taxes
Most of the time spouses transfer properties between them without giving any tax. But in the case of few assets, there may be hidden charges while selling the property. Here are few things that may have possibilities of having hidden taxes. The type of properties are,
business interests
real estate
investment holdings
If you do not give importance to a hidden tax, then you may have to pay the tax and it reduces the value of the property in the end.
Distribute the Dependency Exemptions
According to the IRS, the parent has the right to claim their child as a dependent of his or her tax return. But there is an exception to this rule. The custodial parent can share out the dependence of the child to the non-custodial parent by writing a document. You should address the distribution of Dependency Exemptions and similar values in the divorce decree. Here, in this context, you must consider the value in the overall value of income between the couples.
File Your New Status after Getting Divorce
If the couple gets divorced in a particular year, therefore, they may not be able to file their taxes individually in that year. The individual has to adjust their withholdings to account in order to change their filing status. If the couple gets a divorce at the beginning of the year, then there may be no problems in filing their taxes individually. When their filing status will changes, it will be taken as a part of their divorce process.
If the couples consider these facts while getting a divorce, they can minimize the potential pitfalls while filing the taxes. Keep in mind that the couple should discuss these financing problems with their divorce lawyers and financial advisors to understand more easily.
Consult with Divorce Lawyer
You may wonder which law firm is good for that. There are many law firms in OKC. You can contact Foshee & Yaffee Attorneys at Law for professional divorce lawyers and we hope you may solve your personal and as well as financial problems.
**Disclaimer: This content is not to be construed as legal advice nor does it establish terms of a client-attorney relationship.