Michigan residents filing for divorce are likely cognizant of the emotional challenges that divorce places on the separating couple, as well as their family. They likely are aware of the financial challenges that come from separating property, separating bank accounts, and the like. One area that they may overlook is the challenge associated with taxes. They may be surprised that some of these tax implications may persist for years after the divorce has been finalized.
Individuals who went through a divorce in 2017 will want to pay attention to aspects of the tax law that may affect them going forward. For example, if the divorce was finalized prior to the end of the 2017 calendar year, individuals should file their taxes separately. However, even if a couple was separated during the 2017 tax year, but were not divorced before the year came to an end, there still exists the option of filing jointly or separately.
A second challenge has to do with who can claim children as dependents. After divorce, it is usually the parent who the government considers the custodial parent who has the right to file the child as a dependent. According to the IRS, the custodial parent is the parent with whom the children lived with for the longest part of the year. However, there are some exceptions to this rule. Other tax/divorce related issues include deductions for alimony payments and taxation on assets that transfer hands as a result of the divorce.
A divorce attorney may be able to help their client as they sort through the financial challenges connected to the divorce process. The attorney may represent their client during the divorce proceedings, advocate for their client’s right to have custody or guardianship of their children, as well as provide advice on how shared accounts, property, and other assets could be divided.