Why File for Divorce by the End of the Year?

Time Frame

• Those not divorced, legally separated or living apart for six months by the end of the year must file as married, either as married filing jointly or married filing separate returns.
  
  

Features

• Those couples whom the IRS deemed married for the tax year in question may find that the married filing jointly status brings more advantageous tax rates, but emotions run high and trust can wane during a divorce, so experts advise caution.
  
  

Considerations

• The communication breakdown often accompanying a divorce can mean that a so-called "innocent spouse" who signs a joint tax return may become liable for obligations that come as a complete surprise.
  
  

Warning

• Experts recommend that when a divorcing couple plans to file jointly, the less financially-sophisticated divorcing spouse should hire an independent accountant to examine a joint return and any supporting documents before signing it.
  
  

Potential

• A taxpayer who is unmarried or legally separated at the end of the year may file as Head of Household if certain tests are met. Those filing as Head of Household must have paid more than half of the home upkeep for the year, and have lived with a child or other qualified person for whom he or she is entitled to claim a tax exemption for more than six months.