Preparing taxes ranks right up there with cleaning toilets! Most of us hate it but it’s something we must do. Adding in the divorce card can even make things more difficult. Here are a couple of quick reminders for you.
- If the judge has signed off on your divorce decree, you are divorced, you will not file a joint tax return.
- If you are in the middle of a divorce you will still need to work together to get your tax return filed. If you can not meet the tax filing deadline, which for personal returns is April 15th, you will need to file an extension.
- If you file an extension, it’s only an extension for filing the return, not for paying the taxes. If you wait after the deadline and you owe taxes, you could pay some additional penalties and interest.
- Tax returns can tell a financial professional a lot of information that you may not be thinking about. One example would be dividend income: If one spouse is claiming there are no investments outside of retirement then the question should be raised, “why do we have a dividend if we have no investments”?
- You can not rely only rely on a tax return for the value of a business! Valuations are not anything you should take for granted.
Taxes can be very complex, but adding divorce, mistrust and deadlines to the equation, make it even more so. Get an outside opinion and don’t sign anything until you understand what you are signing!
For a consultation, please give us a call @ 480-897-1067 or send me an e-mail at firstname.lastname@example.org