How To Handle Changes To Your Taxes After Divorce

 Posted on March 22, 2019 in Divorce

Divorce changes the lives of many people in numerous ways. Determining child support, dividing assets, and setting child custody schedules are all normal parts of the divorce process. When you have children, you will also need to consider how to handle the changes your divorce causes with regard to your taxes. There are a few things you have to keep in mind when filing your taxes after a divorce, including what to do about claiming a child as a dependent and your filing status. 

Custodial vs. Noncustodial

The custodial parent is the parent the child spends the greatest portion of time with during the year, and the noncustodial parent is the parent the child spends the lesser amount of time with. The custodial or noncustodial status will most likely affect how you file your taxes after the divorce. The most common practice is for the custodial parent to claim the child as a dependent on their taxes, but it is possible for the noncustodial parent to claim a child as a dependent. The custodial parent needs to sign a form that they will not claim the child as a dependent, and the noncustodial parent also has to fill out a form. Both parents cannot claim the child as a dependent for the same year. 

Filing Status

If you and your spouse are going to get divorced but have not actually divorced before the year ends, it is possible to file a joint tax return, but you can also file with the status, “married filing separately.” Once you are no longer married you will need to choose either single or head of household as a filing status. In order to file as a head of household, you must be unmarried or “considered unmarried” on the final day of the tax year, pay more than half the expenses of a home for that year, and have a “qualifying person” live in your home for greater than half of the year. If those requirements are not applicable to you, then your filing status will be single after the divorce. 

Contact a Novi MI Child Custody Attorney

Taxes are often difficult even before a divorce throws everything in disarray, but being informed can make filing your taxes as smooth as possible. Our helpful Oakland County divorce lawyers have years of experience and knowledge in handling complex divorce cases. The lawyers at Elkouri Heath, PLC offer the compassionate help you need to make sure your divorce is handled properly. Contact us today at 248-344-9700 for a free initial consultation. 

Sources:

https://www.irs.gov/pub/irs-pdf/p504.pdf

https://www.irs.gov/faqs/filing-requirements-status-dependents-exemptions/dependents-exemptions/dependents-exemptions-3