A Year-End Tax Q&A for the Recently Divorced

Written by: Robert D. Bordott

Advisors, you’re likely aware from experiences with clients that divorce is one of the most painful experiences anyone can go through. In addition to the emotional component, financial issues weigh heavily on the minds of the parties to any divorce.

Unfortunately, there are just some things that don’t follow any logic and you just have to know. Here are a few of the most common tax questions for recently divorced couples:

What filing status options do I have if I am separated from my spouse?

You may qualify as Head of Household if you and your spouse lived apart for the last 6 months of the year, and you pay more than half the cost of keeping up a home for your child who lives with your more than 6 months.

What government entities do I need to notify when I get divorced and how do I notify them?

Report any name changes as a result of your divorce. If you took back your maiden name, for example, notify the Social Security Administration. You can go to your local SSA office or change it online at their website.

Make sure you do this before you file your tax return to avoid problems.

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Will I pay less tax if I file jointly or separately?

In most cases, you pay less filing jointly, but there are times when using the married filing separately status can be better.

Do I have to pay tax on Alimony and child support payments I receive?

You will pay tax on the alimony you receive. You do not pay tax on child support payments you receive.