Filing taxes the first time after your divorce

 

 

Once you’ve been through a divorce, there are some steps you can take to gather specific information that should make filing your taxes for the first time after your divorce as easy and painless as possible.  After your divorce, financial planning is a critical piece into gaining back control of your life.

What you need to know

Your filing status is determined by your legal marital status on the last day of the tax year (December 31st).  Even if you are living apart (unless it’s been more than six months, and you’ve filed for legal separation), you are still considered married by law, and should therefore file as either “married filing jointly,” or “married filing separately.”  If, however, you’ve signed the papers and your divorce was made final, you will file either as “single” or “head of household.”  Not everyone can file as “head of household,” but if you are able, it’s the most tax-advantageous way to go. 

To qualify:

• You and your spouse have lived apart for the last six months
• Your home serves as the main residence for qualifying dependents (i.e. your children)
• You (not your ex) have paid the majority of costs in keeping up the home over the last six months
• You claim the dependent deduction for the qualifying dependent on your taxes (this generally means you have primary custody)

If you are still working through the arrangements of custody and determining who will cover what expenses, talk with a financial planner.  You may think you are saving money by having your spouse pay for some expenses, but with a little divorce financial planning could determine that the tax benefits to claiming “head of household” outweigh the actual cost of expenses.

Other things to keep in mind include various tax credits that may be available to you, such as the Child Tax Credit.  This credit is only available to the custodial parent.  


If your “EX” is involved in the filing process

Regardless whether your break up was simple or complicated, you most likely worked out the majority of your financial situation during the divorce proceedings, either with a divorce mediator or in court.  And if your divorce was amicable, having your ex involved in the filing process could be quite straightforward and even advantageous to you, especially if he or she took care of the majority of the financial concerns before the divorce and is willing to openly share information.  In this case, be sure you make time to sit down together or together with a financial planner so that you can get all of the paperwork you will need to file.  However, if your divorce was acrimonious or contested, and you find you are unable to obtain the information you need easily from your ex, it may be in your best interest to consult with your divorce attorney for more information and help acquiring the details you will need to file your taxes.