You are considered divorced if you took status as a single individual before December 31st of a given tax year . You determine your tax filing status based on your marital status on the last day of the tax year, which is December 31 for most individuals. Sometimes it actually makes sense to postpone your date of status until January 1st of the following year if it saves tax dollars. You must agree with your former spouse to postpone the date of status and file married jointly but it may be worth it to both of you to reduce your tax bill during the period to offset legal fees from the divorce. It pays to be negotiable on tax issues. Wellspring Divorce Advisors can help you work with your spouse to determine the most advantageous filing status for your family in the year of your divorce.
We are posting lots of tax related items to the blog in honor of our upcoming speaking engagement at the California Society of Certified Public Accountants Annual Tax and Accounting Institute in San Diego November 18th. We are honored and looking forward to speaking to hundreds of CPA’s from across Southern California and giving them an overview of the many traps and opportunities inherent in the tax code during divorces.