Handling Tax Consequences in a Divorce

Spouses going through a divorce will have to address tax consequences created by the separation. You should discuss your many foreseeable tax obligations with a proven Orange County family lawyer.

Filing Tax Returns Separately or Jointly During Divorce

Orange-County-family-law-attorney-300x200A modicum of cooperation between spouses is necessary for them to file joint tax returns, but that might not come easy in a contentious divorce. As your Orange County family lawyer will advise you, the tax rates for filing separately is higher than joint fliers. It makes financial sense for you and your spouse will to file jointly rather than choosing the option of Married Filing Separately.

Don’t Hold Off on Withholding and Quarterly Reporting

You and your spouse might be too caught up in the divorce process to think about the amount of income taxes that should be withheld from paychecks or paid on a quarterly basis. But your Orange County family lawyer will remind you and your spouse to address this issue as soon as possible to prevent future disasters.

Contingent Tax Liability

Orange County family lawyers are no strangers to dealing with contingent tax liabilities created when the spouses:

  • Are in dispute with the IRS regarding the couple’s tax obligations, or
  • They did not file tax returns for at least one year.

Your Orange County family attorney will advise you to create a contingency plan in response to these dispute situations. Such plans should ideally cover the worst and best case scenarios and return the parties to negotiation if the result of the dispute is beyond what was anticipated.

Addressing Fraudulent Tax Returns

You should be aware of provisions that protect innocent spouses who are (or have been in the past) married to someone who filed fraudulent tax return. If your spouse committed tax fraud, you should protect yourself by discussing this matter with a qualified tax expert or an Orange County family attorney.

You can trust Orange County family lawyer Bethanie Fanti to assist you in resolving tax and other complicated obligations resulting from your divorce. Please call her law offices today at 714-505-3108 for a free initial consultation.

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