When facing the end of a marriage, there are numerous factors that may have an impact on the future. A high asset divorce can be stressful and intimidating, and individuals in Michigan who are facing similar circumstances may wish to cover every aspect of the process. When planning for life after divorce, one might find it beneficial to consider how his or her taxes may change in the process.
Regardless of the level of wealth involved, taxes are a concern for many individuals. Following the end of a marriage, one’s filing status will likely change, which could place him or her in a different tax bracket. The timing of the divorce may also come into play when filing taxes, and ensuring that the correct filing status is chosen could prove imperative.
For parents who choose to move in separate directions, how they list their dependants may also change following divorce. Another aspect to consider pertains to the presence of spousal support, as this can also have an impact on one’s taxes. There may also be certain tax breaks available, such as a mortgage interest reduction for a homeowner. Understanding how these changes may affect an individual could help him or her avoid a potential disaster when it comes time to file taxes.
With a multitude of crucial aspects to consider, those facing a high asset divorce may find it advisable to seek guidance in the initial stages of the process. By speaking with a family law attorney with experience in such intricate matters, a client in Michigan could obtain advice in making informed decisions during legal proceedings. An attorney can address a client’s concerns and needs and assist in pursuing the best outcome possible regarding his or her financial future.
Source: madison.com, “Getting Divorced? Here Are 4 Ways Your Taxes Will Change“, Wendy Connick, Accessed on Oct. 16, 2017