If you and your spouse in New York are discussing the possibility of getting divorced, it is important for you to learn as much as you can about the financial implications of this decision. Some of the decisions made during a divorce may have immediate repercussions but others may not be evident until later on. One area of your life that will be impacted by your divorce is income taxes. If you are not in the middle of tax season, it might be easy to ignore this as you negotiate with your partner about who will get what from your marital estate. However, special attention to taxes is essential during your divorce.
As explained by SmartAsset, once your divorce is final and it comes time for you to file your first solo tax return, your tax filing status and therefore your tax bracket may be dictated in part by the terms of your divorce agreement. Unmarried taxpayers can file income tax returns under one of two statuses. The first is single and the second is head of household. The latter status offers you more advantageous deductions and a lower tax rate.
If you have minor children but your spouse is named the custodial parent, they are the one who will be able to file as head of household while you may have to file taxes as single.
If you would like to learn more about how the agreements you make as part of your divorce agreement may impact your future income tax filings, please feel free to visit the finances and marital dissolution page of our New York divorce and family law website.