If you’re still married and working toward a divorce settlement or judgment, now is the perfect time to consider the impact taxes could have on the final outcome of your case. If you don’t understand the potential tax implications associated with the division of your assets, debts and support payments, you could end up owing the IRS a lot of money. Take steps to avoid this problem by asking your lawyer and tax accountant all of the questions (and more) found in our Talking Taxes Questionnaire or in Tax Lawyer Kelly Phillips Erb’s article Tax and the Single Girl: Seven Things you Need to Know.
Alternatively, if you are separated and no where near a divorce settlement, speak with your lawyer and tax adviser about how you and your spouse will handle tax deductions for 2008.
This article is not legal or financial advice. You should seek the advice of a lawyer and tax accountant about your specific divorce and tax issues.
My divorce was final in 2004. Imagine my surprise earlier this year when the IRS took part of MY tax refund to offset income my ex failed to declare during the last year of our marriage. As you can imagine, I was immediately on the phone, yelling at him, and he overnighted me a check the next day. :-p But, my point is, even years after the marriage is over, financial and tax issues can come back to haunt you.