Taxes and Divorce in California: What To Look Out For
With the passing of each year, few things are as consistent as taxes. This applies to all working adults, whether married, divorced, or in the process of getting divorced. The IRS expects all taxpayers to file their taxes but, depending on their marital status, could have different rules and expectations for different groups of people.
As you’re navigating your CA divorce, you may wonder how this impacts your tax situation. Each case is unique with every separating couple having their own financial situation to account for, but there are a few key things you’ll want to look out for. Today’s post is a look at some of the main tax issues or implications that you need to be aware of as you move forward in your CA divorce proceedings.
Taxes and Dependants After Divorce
Once the separation is formal and the divorce has finalized, your taxes need to reflect this. In most cases, this means that each ex-spouse will file separately as an individual moving forward. In other more specific instances, both parties might agree to continue filing together, with one as a dependent of the other even after marriage. There are many tax benefits to this, but only when the circumstances line up.
If there are any other dependents involved, both parties need to determine who gets to claim each dependent. Much of this is based on who has primary custody, who provides what percentage of the child support, and more.
Mistakes On Your Taxes Can Carry Serious Consequences
One other potential complication involves asset division and distribution. As mistakes on any previous or current tax years can impact the other person’s right to their share, there could be legal consequences for the perpetrator of any deliberate or accidental errors. These consequences can range from added tax fees to more severe punishments, and you could even see your ex gain the upper hand if the family law courts determine that your mistake impacted him/her.
Talk to a Family Law Attorney in California Today
We tailor our approach to every case with the needs of every client in mind. Give us a call at R & S Law Group, LLP today! You can book a free initial consultation with our experienced family law attorneys in CA, simply give us a call at (949) 825-5245 at your earliest convenience.