During a divorce situation the responsibility to report and pay income taxes on all sources of community property can prove to be a heavy financial burden (see previous post re Reporting Income and Deductions on Separate Returns). Fortunately, the IRS offers several sources of relief from this burden. The Community Property Laws with respect to […]
If married spouses elect to file separate returns (see previous post re: filing status), each should report only their own income, exemptions, deductions, and credits on their individual return. This reporting may be easier said than done. It may not always be clear who owns what investment and its income stream and who paid and […]
As most of you are aware, tax season 2015 is here. During tax filing seasons I am often asked to evaluate whether or not one of the spouses undergoing a marital dissolution should sign a “married filing joint” tax return prepared by their spouse (or their spouse’s advisors). The reason this question gets asked so […]
Another issue individuals contemplating divorce must resolve is who gets to claim the Dependency Exemptions for the children. In general, a taxpayer may claim a Dependency Exemption for each child who is under age 19, or under age 24 if a full-time student, and lived with the taxpayer for more than ½ of the year, […]
There are a lot of tough decisions to make in situation when your marriage is failing including if/when to separate, if/when to file for divorce, how to handle child support and alimony, child living arrangements, and the division of property. A very important decision tha t is often overlooked at this time (i.e. before a […]
If you are in a situation where divorce appears to be the only option, you should probably retain the services of a competent experienced family law attorney as early as possible to help guide you through the process and protect your interests. Just the same there are technically five distinct options for obtaining a divorce […]
Right after concern for the welfare of the children, the biggest concern during and after the divorce process generally relates to the fear of the unknown financial impact. During the divorce process, costs generally rise dramatically as the spouses often incur new outlays for legal and forensic representation, emotional counseling services, and separate housing. This […]
I took a hiatus during tax season and have had a tough time getting back on track. In any event, a client of mine recently raised a question which I believe may be relevant to many of you – how long should I keep my records?