Getting Divorced? Get A Tax Preparer Before, During, And After

Are you going through — or about to go through — a divorce? Many things are undoubtedly on your mind right now. But one thing that you should add to your to do list at all stages of the divorce is to meet with a tax preparer. Why? Here are a few reasons to consult a tax pro before, during, and after your divorce.

Before the Divorce Starts

Preparing for a divorce should include how it will affect tax matters. For instance, you may want to consider what could be the best time to file for divorce so as not to lose out on tax credits for kids or education.

A tax preparer can also help you get the documentation and records you will need later on, such as copies of prior year tax returns or financial documentation for a family business. They will also help you understand those returns and what they say about your joint financial situation. 

During the Divorce

Once you are in the process of getting a divorce, tax filing may become more complex. If the divorce is acrimonious, filing jointly could be out of the question and you will need to determine the tax consequences of other filing statuses. A tax preparer could also be a go-between for spouses who still need to file jointly but are hesitant to physically come together to do the work. 

Tax returns for divorcing spouses have many nuances, so you should get help figuring out which filing statuses you qualify for at various stages, determining who can claim the kids or other tax credits, and dividing up income and expenses. 

Tax professionals are also good resources when it comes to financial questions. They can help you determine the tax implications of various divorce settlement options. And if you suspect your spouse hasn't been entirely honest, an experienced preparer will look for any signs of tax improprieties. 

After the Divorce

Once you're on your own, your income and expenses will likely change significantly — for better or worse. You need professional assistance to minimize negative effects.

Work with an experienced tax preparer to analyze your options, such as claiming head of household or deferring income. They can also help you make the best tax-related choices with accounts or assets you received in the divorce decree or asset sales you must now make. 

Clearly, a good tax preparer is an ally at all stages of a divorce. Don't yet have one on your team? Start today by meeting with a reputable preparer in your area. 

For more information on tax services, contact a local accountant.

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