If you and your spouse would like to officially divorce, it may be a good idea to get your combined ducks in a row before filing. Divorce can be costly and it is best to make sure that you have your marital business taken care of first. This includes any debts, such as back taxes. If you are interested in taking care of many financial issues prior to making the divorce final, the first attorney that you should hire is a tax attorney, such as Wiesner & Frackowiak, LC. Here are some things to get sorted prior to divorce to make it quick and easy.
Deal with any back taxes
If you have had any past tax issues and owe back taxes or have liens, you should seek to take care of these prior to the divorce. Depending on which spouse has the most income, one spouse could get stuck with the majority of the tax debt. If one spouse has no job, they may still be stuck paying, or have to take less property in the divorce settlement. Come to a conclusion together on how to pay off these debts, including what to sell to get rid of the debt. This will even out financial footing during divorce.
Figure out how future taxes will look
Depending on who is doing most of the supporting of the household and the children, your tax return after divorce will look much different than during divorce. Have your tax attorney help you figure out who can claim the children and who may owe the government during the tax year, rather than receiving a return. This knowledge can help you claim deductions and reset your dependant level for your W-4.
Determine if bankruptcy is best
If a tax attorney lets you know that it looks like it will be next to impossible to pay off any of your tax debt within the next few years, bankruptcy may be a better idea. Filing for bankruptcy together as a couple prior to a divorce can put you both on the same footing. It also disallows the option for one person to claim bankruptcy and leave the other half of the couple with the bills.
Who can afford what property
With the help of a tax attorney, you can go over what type of taxes will be owed by the owner of each property. The person who pays the property taxes on the home, land, or other items will be the owner in accordance with the law. It is important to make sure that whoever is assigned the property in the divorce can afford it.
