Many times when people decide to get a divorce, they file the paperwork at the first moment they get. This is understandable since it can take six months or more to resolve the case; so the sooner the person files, the sooner the couple can legally part ways. However, being strategic about when to divorce can pay off in some positive benefits.
Divorcing at the right time can make tax time a lot easier the following year. For instance, when your divorce goes through can determine whether or not you can file Head of Household on your tax return. This tax status lets the filer take a higher deduction and qualify for a lower tax rate.
However, to qualify for Head of Household, you must
To take advantage of this, you must file your divorce at a time when it will be granted by the deadline. So filing in the first quarter of the year should allow for ample time for an uncontested divorce to complete by December 31.
Resolving property issues before the tax year concludes can also determine who will enjoy a tax deduction or be saddled with a tax bill. For example, the IRS allows homeowners to deduct interest paid on the mortgage. If you get the house before the year concludes, then you may be able to take this deduction the following tax year.
Money shouldn't be the only thing to consider when getting a divorce, though. If you have children, for instance, it may be best to separate at the start of the summer to give kids a chance to recover from the shock without having to deal with the stress of school.
If you've been a stay-at-home parent during the marriage and you'll have to support yourself after the divorce, the best time to separate may be when employers are more likely to be hiring. Although it depends on the industry, the end of the year tends to be the slowest hiring season because many companies are operating on the fumes of their yearly budgets. It may be better to separate in January or February when corporate budgets renew and job openings are more plentiful.
Getting a divorce is rarely ever easy, but taking time to plan your divorce can make the process smoother. For more advice on when to divorce, contact a divorce lawyer like Koth & Gregory PC Law Firm.
Hello, I'm Phillip Kerr and I just love the legal profession and courtroom drama. Have you ever watched judge shows on TV? I know that these shows are not an accurate representation of the courtroom, but there is something you may have noticed. Some individuals come into the courtroom well-dressed, articulate, respectful and with the knowledge and documents necessary to support a case, while others come unprepared, slovenly dressed and appear as if they do not have a care in the world. How you present yourself and the knowledge that you have of the law will have an impact on how you are treated, even if you have legal representation. This blog is designed to assist those who are going to trial in doing just that.