Knowing how one's taxes may change following divorce | Lane & Lane, LLC
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Knowing how one's taxes may change following divorce

The end of a marriage will inevitably bring about change in the lives of those involved. Individuals who are facing divorce in New Jersey may seek to protect their financial futures by focusing on certain aspects of the process, such as the division of property. However, other areas may also require attention, and one might find it advisable to consider the impact that taxes may have on life moving forward.

Following the end of a marriage, a person's filing status will naturally change, the nature of which will depend on the variables present. For those who have children or dependents living with them, they will likely file as head-of-household, while others may have to shift into a single filing status. Understanding the necessary filing status and how it might impact one's life could be crucial to avoiding a potential disaster.

There may also be additional concerns to consider, such as the potential changes to eligibility for tax breaks. Certain tax breaks, such as those pertaining to some retirement accounts, may have income limits that can change depending on a person's filing status. In addition, one might want to consider making the necessary adjustments to employment-related tax withholding, as failing to do so could have significant consequences.

When facing divorce, a person might wish to cover every aspect along the way, but the process can be complex. Those experiencing a similar situation could speak with a family law attorney for guidance throughout the process. An attorney in New Jersey can address a client's concerns and wishes and assist in pursuing the most favorable outcome possible during subsequent legal proceedings.

Source: fool.com, "Getting Divorced? Your Taxes Could Be Crushing", Wendy Connick, Dec. 11, 2017

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