You don’t need to binge-watch Tidying Up with Marie Kondo on Netflix to make organization your best friend during a divorce.
Forbes is encouraging those going through a divorce to get organized, and the tax season is upon us all, making a battle of the paperwork that rules our lives.
Our Freehold divorce lawyers recently wrote about Planning for a Divorce in 2019.
Committing to getting and staying organized, and seeking qualified legal help, are the two best things you can do to establish your new life on a strong foundation.
NJ Divorce and Your 2019 Taxes
FOX Business recently tackled the issue of who can claim dependents for tax purposes. In addition to the benefits of filing Head of Household status, those who claim dependents are also eligible for other tax benefits, including the Child Tax Credit, Earned Income Tax Credit, and the Child and Dependent Care Tax Credit.
Those whose separation agreement does not specify who can claim the credits will leave their fate in the hands of the Internal Revenue Service. The IRS uses dependent residency status and parental income to make a determination. Custodial parents can allow the non-custodial parent to claim the dependent if he or she relinquishes the rights by submitting IRS Form 8332, "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent."
But establishing all tax rights and tax obligations is best done during a negotiated divorce settlement, as taxes can have far-reaching implications.
Recent alimony tax changes are another example of the major impact taxes can have on a divorce. Alimony payments had been tax deductible since World War II. But that will no longer be the case in 2019. Experienced divorce lawyers in Freehold can best protect you from the tax consequences of divorce – both now, and in the future. The alternative is to leave your welfare in the hands of your former spouse and the Internal Revenue Service’s Customer Service department.
Organizing for Divorce
Getting organized will best set you up for success. Forbes shared many of the same tips we offered here on our divorce blog. Gather all financial documents, including bank statements, mortgage statements, insurance policies, tax information, healthcare policies, and documentation of all other assets and liabilities.
Annual tax time is a great time to gather and organize most of this paperwork. Though a task that stresses many people, committing to getting organized can be empowering. Seeing our clients starting a new life on firm footing is one of the most rewarding parts of family law.
Call Rozin|Golinder Law, LLC today for a free and confidential consultation.