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Novi MI divorce lawyerDivorce changes the lives of many people in numerous ways. Determining child support, dividing assets, and setting child custody schedules are all normal parts of the divorce process. When you have children, you will also need to consider how to handle the changes your divorce causes with regard to your taxes. There are a few things you have to keep in mind when filing your taxes after a divorce, including what to do about claiming a child as a dependent and your filing status. 

Custodial vs. Noncustodial

The custodial parent is the parent the child spends the greatest portion of time with during the year, and the noncustodial parent is the parent the child spends the lesser amount of time with. The custodial or noncustodial status will most likely affect how you file your taxes after the divorce. The most common practice is for the custodial parent to claim the child as a dependent on their taxes, but it is possible for the noncustodial parent to claim a child as a dependent. The custodial parent needs to sign a form that they will not claim the child as a dependent, and the noncustodial parent also has to fill out a form. Both parents cannot claim the child as a dependent for the same year. 

Filing Status

If you and your spouse are going to get divorced but have not actually divorced before the year ends, it is possible to file a joint tax return, but you can also file with the status, “married filing separately.” Once you are no longer married you will need to choose either single or head of household as a filing status. In order to file as a head of household, you must be unmarried or “considered unmarried” on the final day of the tax year, pay more than half the expenses of a home for that year, and have a “qualifying person” live in your home for greater than half of the year. If those requirements are not applicable to you, then your filing status will be single after the divorce. 

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Oakland County divorce attorney, asset valuation, marital assets, tax consequences, high asset divorceIf you are a member of a high net worth family and accustomed to a certain standard of living, a divorce can post a significant threat to your assets and lifestyle. To protect your best interests, you should understand the unique risks and challenges you may face in a high asset divorce.

Take the Time and Get the Advice to Do It Right

You may want to get your divorce over with as quickly as possible, so you can move on to the next phase of your life. You may not want to devote a lot of time to the process, as you may run a business that requires most of your attention or have a job that requires a lot of time away from home.

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