Tax Issues for Divorcing Spouses to Look Into
Mandi Woodruff at the Business Insider provides the following tips for divorcing spouses:
Procrastinating. If you’re newly divorced and haven’t filed taxes as you read this article, you might want to get a move on it. First of all, there’s no telling how willing your ex will be to fork over his or her tax records, which could throw a major roadblock in your way. And if you’re relying on a CPA or tax preparer to play mediator, chances are high they’ll be too swamped this late in the season to field your last-minute questions.
Setting yourself up for liability by filing jointly. Every couple has to decide whether to file as married (joint) or married (filing separately) after a divorce. There’s a big difference here, which is that filing jointly means you’re on the hook if your ex winds up in tax trouble. “You’re liable for everything on the tax return even if it’s related to your spouse,” Mindel says.
