Going through a divorce can have significant financial implications. In addition to dividing assets and determining support payments, it's essential to understand the tax consequences involved during a divorce. This blog will explore the key aspects of divorce and tax implications in Michigan, providing valuable insights to help you make informed decisions during this complex process.
Filing Status and Exemptions
One of the crucial considerations during divorce is the change in filing status. You have two options in Michigan: Married Filing Jointly or Separately. Each option has its own impact on tax rates and deductions.
If you file jointly, both spouses are equally responsible for the tax liability. However, filing separately may be necessary in certain situations, especially if there are concerns about the accuracy of reported income or potential tax fraud. It's important to carefully evaluate the tax consequences of both options before making a decision.
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