Monday, April 18, 2011

SHOULD I FILE SEPARATE INCOME TAX RETURNS DURING A DIVORCE?

I frequently receive questions from people regarding their family law issues. The following is a question which the inquirer agreed may be publicly revealed, and my answer to the question:

QUESTION: My ex and I separated a couple of years ago. We are in the middle of a divorce and negotiating an MSA. I pay child support to her. My accountant says that it would be more economical for us to file together than separately this year. Regarding divorce proceedings and child custody, am I putting myself in a bad position by filing WITH her instead of separately?

ANSWER: Were you to file as Married Filing Separately, you would be in a higher income tax bracket than you would be in were you to file joint income tax returns, even considering your wife's income - per your accountant's analysis of your particular income situation.

If you and your soon-to-be ex file jointly, the two of you (and/or your lawyers) would just need to figure out how to apportion any refund or income tax liability.

Child Support is an after-tax payment, whereas Spousal Support is tax deductible to the payor and taxable to the payee.

Were you paying Spousal Support pursuant to a written support agreement or court order, you would lose the tax benefit of the tax deduction for Spousal Support payments made if you filed joint income tax returns with your wife.

Since you are only paying Child Support, that will not affect your tax liability, either way you file.

Under your circumstances, filing jointly with your wife should not put you in a bad position in your divorce and child custody proceedings.

This educational blog is brought to you by DONALD F. CONVISER, an effective and aggressive Los Angeles Family Law Attorney and Divorce Lawyer serving clients in the courts of Los Angeles and Ventura County for over 35 years,owner of Warner Center Law Offices, with offices in Woodland Hills and Century City. Call 888.632.4447 or 818.880.8990 for a free confidential consultation with a Certified Family Law Specialist to discuss your divorce or family law issues. | www.conviser.net | www.conviserfamilylaw.com |

No comments: