One thing that it can be easy to overlook when you are divorcing or newly divorced is the tax consequences of your divorce. Whether your divorce affects your taxes for better or for worse, there is one thing that is certain – you will need to do your taxes at least somewhat differently than you did when you and your spouse were married. Some of the tax changes that relate to divorce take place before your divorce is even final, so it is essential that all divorced or divorcing Texans know what to do for their particular situation when tax time comes around.

Since every divorce is unique, it only makes sense that your taxes could be affected differently by your divorce than your friend’s or your co-worker’s. The only way to know for sure what to do at tax time is to ask both your divorce attorney and your tax preparer. If you usually do your taxes, it is well worth consulting with a tax professional for a few years, both during and after your divorce, just to make sure that everything gets filed as it should. You might eventually resume doing your taxes on your own, but for now, getting some professional advice is a good idea.

Three things that you may want to pay particular attention to regarding your taxes are your filing status, exemptions, and alimony. Depending upon whether your divorce is final or even how long it has been since you filed for divorce if it’s not yet final, your filing status may be different this tax year than it was last tax year. You may also have multiple options available to you for filing status, and your attorney and or your tax professional can help you weigh the advantages and disadvantages of each so you can select the filing status that will work best for you.

In divorces where there are children or other relatives in the home who get claimed as dependents by one or both spouses, divorce can bring about changes to the number of exemptions that each spouse can claim in any given tax year. Sometimes, exemptions even get used as a bargaining tool in divorce negotiations, as something that divorcing spouses can divvy up as part of their divorce settlement. As with all of the other tax issues related to divorce, it’s a good idea to consult with your attorney and tax preparer about your exemptions before you file so that you can be sure to do them correctly.

A third common tax issue in divorce cases is alimony. Your divorce may not involve alimony, but if it does, definitely check in with your attorney and your tax preparer about how you are to deduct it if you are the paying spouse or how to report it as income if you are the receiving spouse. There are particular rules for including alimony on your tax return, and it is essential that you follow them as they apply to your specific situation.

If you have questions about your Texas divorce, call (903) 753-7499 today to schedule a consultation with Texas Family Law Attorney Alex Tyra. You can also visit our web page anytime to submit an online contact form.