How to Identify and Avoid Financial Scams Targeting Divorced Individuals? | Los Angeles Divorce

Posted by Tim Blankenship on

 

How to Identify and Avoid Financial Scams Targeting Divorced Individuals?

I’m Tim Blankenship from Divorce661. If you recently finalized your divorce, first—congratulations on moving forward. Second—be extra cautious: divorce is a vulnerable transition and scammers know it. In this article I’ll walk you through the top scams that target newly divorced individuals, real red flags to watch for, and clear, practical steps to protect your finances and personal information.

Why newly divorced people are prime targets

Major life changes come with emotional and financial stress. Scammers exploit that stress, attempting to move quickly before you can think things through. If you receive a settlement or lump-sum payment, you may suddenly have funds that attract attention from predatory services and fake advisors. Staying calm, skeptical, and informed is your best defense.

Top 3 financial scams that commonly target divorced individuals

1. Debt relief and credit repair scams

These services promise fast fixes to credit problems or to erase negative items from your report—for a fee. Many charge high upfront costs for work you can often do yourself for free.

  • Red flag: Promises to remove accurate negative information or guarantees of a dramatic score jump.
  • Reality: You can check and dispute credit reports for free (for example through AnnualCreditReport.com) and take steps to rebuild credit without paying large fees.

2. Fake “financial advisors” chasing divorce settlements

After a settlement, you may encounter people who guarantee investment outcomes, pressure you to act quickly, or ask for large upfront fees. These are classic signs of fraud.

  • Red flag: High-pressure sales tactics, guarantees, and requests to transfer funds immediately.
  • How to verify: Check credentials through FINRA BrokerCheck or Investment Adviser Public Disclosure, and look up CFPs through the CFP Board. If someone resists independent verification, walk away.

3. Phishing and impersonation scams to steal personal information

Scammers often pose as credit card companies, banks, or other legitimate organizations to trick you into revealing account numbers, Social Security numbers, or online banking credentials.

  • Red flag: Unsolicited calls or emails asking for sensitive details, or messages that urge immediate action.
  • How to respond: Never share bank account numbers or Social Security numbers via email or over the phone unless you initiated the contact and verified the recipient. When in doubt, contact the company directly using a phone number from their official website or statements.

Common red flags to watch for

  • Too good to be true: Guarantees of quick fixes or guaranteed returns.
  • High-pressure tactics: “Act now” or “limited time” to force emotional decisions.
  • Upfront, nonrefundable fees: Especially when combined with vague service descriptions.
  • Requests for sensitive info: SSN, passwords, bank logins, or one-time codes over email/phone.
  • No verifiable credentials: No registration, poor online presence, or unverifiable references.

Practical steps to protect yourself

  1. Pause before you act: Take time to research any offer—especially if it follows your divorce or a settlement.
  2. Verify credentials: Use FINRA BrokerCheck, SEC/IAPD, and the CFP Board to confirm advisors are registered and in good standing.
  3. Check credit for free: Obtain reports from AnnualCreditReport.com and dispute inaccuracies yourself at no cost.
  4. Lock down accounts: Change passwords, enable two-factor authentication, and consider credit freezes or fraud alerts if you suspect risk.
  5. Never send sensitive info through insecure channels: Don’t share SSNs, bank logins, or account numbers over email or unsolicited calls.
  6. Get a second opinion: Before making large financial moves, consult someone you trust—preferably a verified professional or a trusted family member/friend.

Real example

A client received a call from someone claiming to be a credit card representative asking for account details. Because the client checked with us first, we stopped the fraud in its tracks. This is a perfect example of why verification and a short pause matter.

“It’s better to be cautious than to fall into a trap.”

What to do after you receive a settlement or lump sum

  • Create a short plan before you move money—decide on immediate needs, an emergency fund, and longer-term investments.
  • Use reputable banks and brokerages with clear, verifiable reputations.
  • Consider working with a fee-only fiduciary advisor—someone legally obligated to act in your best interest—and verify their registration.
  • Keep records of who you spoke with and any account changes made during the transition.

Final thoughts

Your personal information is valuable and scammers will try to trick you into giving it away. By staying vigilant, verifying credentials, and using the free resources available to you, you can protect your finances during this vulnerable time. Remember: your safety and security are in your hands.

If you want help securing your accounts and spotting scams after divorce, visit Divorce661.com for expert guidance and a free consultation. We offer affordable, flat-fee support to help you move forward with confidence.

What to Know About Filing Taxes as a Single Person Post-Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

What to Know About Filing Taxes as a Single Person Post-Divorce

I’m Tim Blankenship from Divorce661.com. If you’ve recently finalized your divorce, congratulations on taking a big step forward — and be aware: tax season is about to look a lot different. In this article I’ll walk you through the key tax changes that happen after divorce, what determines your filing status, how Head of Household works, common pitfalls I’ve seen, and practical steps to prepare for the next tax year.

“Divorce isn’t just a change in relationship status. It affects your taxes, too.”

Why your filing status matters

Your filing status affects your standard deduction, tax brackets, eligibility for certain credits, and overall tax liability. The difference between filing as single and filing as Head of Household (HOH) can mean a higher standard deduction and lower tax rates — so getting your status right can save you money.

The key date: December 31

The IRS (and most tax systems) determine your filing status based on your marital status on December 31st of the tax year. If your divorce is finalized by that date, you cannot file jointly; you must file as single or, if you qualify, Head of Household.

Who qualifies for Head of Household?

Head of Household is a valuable status, but it has specific requirements. In plain terms, to qualify you generally must:

  • Be unmarried (or legally divorced) on December 31 of the tax year.
  • Pay more than half of the cost to maintain a home for the year.
  • Have a qualifying dependent who lived with you for more than half of the year.

“Pay more than half of household costs” means you contributed the majority of expenses such as rent or mortgage, utilities, groceries, repairs, property taxes, and other household costs. The dependent must meet IRS tests (relationship, residency, and support tests), and residency — who the child actually lived with — is often the deciding factor.

Common documentation to support HOH

  • Records of household expenses (receipts, bank statements, canceled checks).
  • School or medical records showing the child’s primary residence.
  • Custody agreements and parenting time logs.

Real client example: why assumptions can cost you

One client assumed she qualified for Head of Household after divorce because she thought her child lived with her. In reality, the child spent more nights with her ex, so she did not meet the residency requirement. That misunderstanding cost her access to HOH benefits for that year. We helped her correct the filing and put safeguards in place so this wouldn’t happen again.

This is a common scenario. Assumptions about custody, residency, and who paid household expenses lead to costly mistakes. Even small differences in who the child lived with can change your filing status and tax benefits.

How we help at Divorce661

We do not provide tax advice, but we do make sure your divorce paperwork aligns with tax planning needs and connect you with trusted tax professionals. Our role is to:

  • Review and structure divorce documents with tax implications in mind.
  • Refer you to tax pros who can give specific, up-to-date guidance.
  • Help you understand financial changes after divorce so you can plan your tax strategy.

Practical steps to prepare for the next tax season

  1. Confirm the exact date your divorce was finalized and how that affects your filing status for the year.
  2. Track and document household expenses throughout the year if you may qualify for HOH.
  3. Maintain clear custody and residency records for dependents (calendars, school records, medical visits).
  4. Consult a qualified tax professional early — ideally before you file — to verify eligibility for HOH or other credits.
  5. Review divorce settlement language about who claims dependents, who pays what, and how tax-related items are handled.

When to consult a tax professional

If you have questions about whether you qualify for Head of Household, who can claim a child as a dependent, or how alimony, property division, and support payments affect your return, speak with a tax professional. They can apply the current tax code to your specific facts and help you avoid filing mistakes.

Conclusion — plan ahead to avoid surprises

Understanding how divorce affects your taxes lets you plan and avoid costly errors. Know your filing status on December 31, document custody and household costs, and get professional tax guidance when needed. If you need help aligning your divorce paperwork with tax planning or want a referral to a trusted tax pro, visit Divorce661.com for a free consultation. Take action now so your post-divorce tax filing is smooth, accurate, and stress-free.

What to Know About Filing Taxes as a Single Person Post-Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

What to Know About Filing Taxes as a Single Person Post-Divorce

Hi, I’m Tim Blankenship from Divorce661. If you’ve recently finalized your divorce, congratulations — and welcome to a new set of financial responsibilities. One of the biggest practical changes you’ll face is how you file your taxes. Filing as a newly single person isn’t just checking a different box: your filing status, deductions, and who claims the kids can all change. Here’s a clear guide to help you navigate tax season and avoid costly mistakes.

Why your filing status matters

Your filing status affects your standard deduction, tax brackets, eligibility for credits, and overall tax outcome. Small differences — like qualifying for Head of Household instead of Single — can mean a significantly lower tax bill. Understanding the rules up front helps you plan your withholding, budgeting, and conversations with tax professionals.

Key rule: the December 31st test

“Your filing status is based on your marital status as of December 31st of the tax year.”

That one line determines whether you file as Married (Jointly or Separately) or as Single/Head of Household for the entire year. If your divorce was finalized on or before December 31st, you will not file as married for that tax year. If your divorce finalizes after the new year, you may still need to file as married for the prior year — so know the exact date of your decree.

Single vs. Head of Household: what’s the difference?

Two common statuses for people post-divorce are:

  • Single: The default if you’re unmarried and don’t meet Head of Household rules. You receive the single standard deduction and standard tax brackets for single filers.
  • Head of Household (HOH): A more favorable filing status for qualifying single taxpayers who maintain a home for a qualifying dependent. HOH typically gives a higher standard deduction and better tax rates than Single.

Do you qualify for Head of Household?

To claim Head of Household, you must meet these key requirements:

  • You must be unmarried (or considered unmarried) on December 31st.
  • You must have paid more than half the cost of maintaining a home for the year.
  • You must have a qualifying dependent who lived with you for more than half the year (with some exceptions for temporary absences).

Meeting all three is critical. If one element is missing, you may be required to file as Single.

Child custody and tax claims: common pitfalls

Child custody arrangements directly affect who can claim the child as a dependent and who may claim HOH. It’s easy to assume you qualify for HOH after divorce, but the reality depends on where the child lived and who paid household expenses.

“We worked with a client who assumed she’d file as Head of Household after her divorce, only to realize that her child had spent more time living with her ex.”

That misunderstanding led to a costly mistake when she filed. Custody schedules, overnight counts, and who pays bills all matter. If you’re unsure, document the child’s residency and expenses, and talk with a tax professional before filing.

Practical steps to take right after your divorce

Use this checklist to reduce surprises when tax season comes:

  • Confirm the exact date your divorce was finalized (December 31st is the key cutoff).
  • Determine where any qualifying children lived during the year and who paid household costs.
  • Update your Form W-4 with your employer to reflect changes in withholding.
  • Review your divorce agreement for tax provisions (who claims dependents, how tax credits are split, etc.).
  • Consult a tax professional if you have complex asset division, alimony/child support questions, or business interests.
  • Keep clear records of custody calendars, major household expenses, and any agreements about who claims the kids.

How Divorce661 helps — and what we don’t do

At Divorce661, we prepare clients for life after divorce, including financial and tax-related changes. While we don’t provide tax preparation or formal tax advice, we:

  • Explain the tax consequences of divorce-related choices.
  • Make sure divorce paperwork reflects your financial and tax agreements.
  • Connect you with trusted tax professionals who can provide specific tax guidance.
  • Help you update withholdings and plan to avoid surprises next tax season.

Real next steps

If you’ve recently divorced and aren’t sure how to file this year, start by getting clarity on the date your divorce was final and documenting your child’s residency and household contributions. Then reach out to a tax professional to confirm whether you qualify for Head of Household or must file as Single.

If you’d like help translating your divorce decree into a practical financial plan and connecting with trusted tax resources, visit Divorce661.com to schedule a free consultation. We’ll walk through how your divorce impacts your taxes and make sure you’re set up for the year ahead.

Conclusion

Filing taxes after divorce is a manageable process if you understand the rules and take a few proactive steps. Remember the December 31st test, confirm residency and expense contributions for any dependents, update withholdings, and seek professional advice when needed. A little preparation now can prevent costly mistakes later.

When You MUST File A Joint Tax Return After Filing Divorce: Uncontested California Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

🤑 When You MUST File A Joint Tax Return After Filing Divorce: Uncontested California Divorce

Divorce can be a complicated process, especially when it comes to finances and taxes. Many people wonder when they can file their taxes separately after filing for divorce, or if they need to file jointly. If you’re going through an uncontested divorce in California, it’s important to understand the tax filing requirements during the divorce period.

In this article, we’ll break down why you must file a joint tax return after filing for divorce in California and what the six-month cooling-off period means for your tax filing status. This information will help you avoid common pitfalls and make informed decisions during your divorce process.

Understanding the Divorce Timeline and Tax Filing

When you file for divorce in California, there is a mandatory six-month waiting period before your divorce can be finalized. This cooling-off period is designed to give both parties time to reconsider or resolve any outstanding issues.

Because of this waiting period, even if you have filed for divorce, your legal status remains “married” for tax purposes until the divorce is officially finalized. This means that for the current tax year, you are still required to file your taxes jointly if you want to remain compliant with state and federal tax laws.

Why You Must File Joint Taxes After Filing Divorce

One common misconception is that once you file for divorce, you can immediately start filing taxes separately. However, this isn’t the case in California due to the six-month waiting period.

“Just had someone tell me they didn’t want to file for divorce yet because they wanted to wait to be able to file taxes this year. Well guess what, you have to file joint taxes this year because your divorce isn’t going to finalize due to the six-month cooling-off period until next year.”

Even if you have started the divorce process, the IRS and state tax authorities consider you married until the divorce is finalized. Filing separately before the divorce is official can lead to errors, delays, or even penalties.

What Does This Mean for Your Tax Planning?

If you are considering divorce but want to maximize your tax benefits for the current year, it’s important to understand that you will need to file jointly for that year. This can affect your tax liability, exemptions, and deductions.

  • Joint Filing Benefits: Filing jointly often provides access to higher income thresholds for tax brackets, larger standard deductions, and eligibility for various tax credits.
  • Tax Liability: Filing jointly means both spouses are responsible for the tax return and any tax due, even if one spouse earned all the income.
  • Future Planning: Once the divorce is finalized after the six-month period, you can file separately in subsequent tax years.

Tips to Navigate Tax Filing During Divorce

  1. Consult a Tax Professional: Divorce and taxes can be complex, so getting advice tailored to your situation is crucial.
  2. Communicate with Your Spouse: Since you’ll need to file jointly, ensure you both agree on the tax filing details to avoid conflicts.
  3. Prepare for the Cooling-Off Period: Use this time to organize your financial documents and plan for separate filings once your divorce is finalized.

Conclusion

Filing taxes during a divorce requires careful timing and understanding of legal requirements. In California, due to the mandatory six-month cooling-off period, you must file a joint tax return for the year you file for divorce, even if you wish to file separately.

Being aware of this timeline helps you avoid surprises and ensures compliance with tax laws. If you’re navigating an uncontested divorce, remember that the tax filing status remains married until the divorce is finalized, so plan your tax filings accordingly.

For more guidance on uncontested California divorce and tax implications, consider consulting with legal and tax professionals who specialize in divorce cases.

 

What Happens If You Need to File Taxes Separately After Divorce? | Los Angeles Divorce

Posted by Tim Blankenship on

 

What Happens If You Need to File Taxes Separately After Divorce? | Los Angeles Divorce Insights

Divorce brings many changes, and one of the most important yet often overlooked aspects is how it impacts your tax filing status. If you’ve recently finalized your divorce or are navigating the process, understanding your tax obligations can save you from unexpected headaches with the IRS and financial surprises during tax season.

In this article, we’ll break down how your marital status as of December 31st dictates your tax filing status, the differences between filing as single or head of household, and key considerations for claiming deductions and credits post-divorce. Along the way, you’ll hear real-life examples and practical advice to help you avoid costly mistakes.

How Your Divorce Date Affects Your Tax Filing Status

One critical factor in determining your filing status is your marital status on December 31st of the tax year. The IRS uses this date as the cutoff to decide if you qualify as married or single for that year’s tax filing.

  • If your divorce is finalized by December 31st: You must file as either single or head of household, depending on your circumstances.
  • If your divorce is not finalized by December 31st: You can still file jointly or separately as married.

This distinction is crucial because filing separately as married or filing as single can significantly impact your tax bracket, deductions, and eligibility for various credits, such as the child tax credit.

Single vs. Head of Household After Divorce

Filing as single is straightforward if you live alone without dependents. However, if you have children or other dependents living with you, you might qualify for head of household status, which offers better tax rates and higher deductions than filing as single.

To qualify as head of household, you generally need to meet these criteria:

  1. Be unmarried or considered unmarried on the last day of the tax year.
  2. Have paid more than half the cost of keeping up a home for the year.
  3. Have a qualifying person, such as a child, living with you for more than half the year.

Understanding which status applies to you can make a big difference in your tax outcome.

Coordinating Claims for Children and Key Deductions

Post-divorce, deciding who claims the children and other important deductions like mortgage interest is essential to avoid IRS conflicts and maximize benefits for both parties. Coordination with your ex-spouse is key.

It’s best to have these agreements clearly outlined in your divorce settlement to prevent confusion later. For example, you might agree that one parent claims the children for tax purposes while the other claims mortgage interest or other deductions.

This proactive step helps ensure both parties understand their responsibilities and prevents costly disputes or IRS audits down the line.

Real-Life Example: Avoiding Tax Filing Surprises

Consider a client who assumed she could file jointly with her ex-spouse, only to realize her divorce was finalized in December—before the tax year ended. Because of this, she was required to file as single, which altered her expected refund and triggered IRS scrutiny.

By adjusting her filing status in time, we helped her avoid penalties and confusion. This example highlights the importance of knowing your exact divorce date and its tax implications.

How Divorce661 Can Help You Navigate Post-Divorce Taxes

At Divorce661, we specialize in supporting clients through the legal and financial transitions of divorce, including tax preparation and planning. Our expertise ensures you:

  • Understand your correct filing status based on your divorce date.
  • Coordinate tax decisions with your ex-spouse effectively.
  • Avoid costly mistakes that could lead to IRS penalties.
  • Gain financial clarity as you move forward.

We also emphasize the importance of having clear tax responsibilities outlined in your divorce agreement, which can make your post-divorce financial life much smoother.

Conclusion: Be Prepared and Informed for Tax Season After Divorce

Your marital status on December 31st is a pivotal factor in your tax filing for the year. Filing as single, head of household, or married (jointly or separately) each carries unique implications for your tax bracket, deductions, and credits.

To avoid surprises and ensure a seamless transition into your new financial reality, coordinate tax claims with your ex-spouse and make sure these details are clearly spelled out in your divorce agreement.

If you’re facing questions about how to file taxes after divorce or want professional guidance, visit Divorce661.com for a free consultation. Our dedicated team is here to guide you every step of the way, helping you navigate post-divorce tax complexities with confidence.

 

What Happens If You Need to File Taxes Separately After Divorce? | Los Angeles Divorce

Posted by Tim Blankenship on

 

What Happens If You Need to File Taxes Separately After Divorce?

Filing taxes after a divorce can be a confusing and stressful experience, especially if it’s your first tax season navigating finances on your own. I’m Tim Blankenship from Divorce661, and I’m here to help you understand what it means to file taxes separately after divorce, how your filing status is determined, and what you should watch out for to avoid costly mistakes.

Understanding Your Tax Filing Status Post-Divorce

The most important factor in determining your tax filing status after a divorce is your marital status on December 31st of the tax year. The IRS uses this date to decide how you must file your taxes:

  • If your divorce was finalized by December 31st: You are considered unmarried for that tax year. This means you will file either as Single or, if you qualify, as Head of Household.
  • If your divorce was not finalized until the following year: You can still file as Married Filing Jointly or Married Filing Separately for that tax year.

This distinction is crucial because it affects your tax bracket, deductions, and eligibility for various tax credits.

Filing Separately: What You Need to Know

Choosing to file separately after divorce can have several implications:

  • Tax Bracket Impact: Filing separately often places you in a different tax bracket than if you filed jointly, which can increase your tax liability.
  • Loss of Certain Tax Credits: Credits such as the Earned Income Credit and the Child Tax Credit may no longer be available or may be reduced.
  • Claiming Dependents and Deductions: Who claims the children for tax purposes, mortgage interest, and other deductions can be affected. These details are typically addressed in your divorce agreement.

If your divorce agreement doesn’t specify who claims what, you’ll need to coordinate with your ex-spouse or seek professional guidance to avoid disputes or IRS issues.

A Real Client Story

We recently assisted a client whose divorce was finalized just days before the end of the year. She assumed she could still file jointly with her ex-spouse. However, because the divorce was official in December, the IRS required her to file as single. This change meant she had to revisit her tax withholdings and adjust her expected refund. Fortunately, with our help, she was prepared and avoided any surprises come tax time.

Why Proper Planning Matters After Divorce

At Divorce661, our services go beyond simply filing divorce paperwork. We help you understand the financial landscape of life after divorce, including:

  • How to handle tax filing status changes
  • Understanding support payments and their tax implications
  • Preparing for financial transitions to maintain stability

Proper planning ensures you stay ahead of potential problems and avoid costly mistakes that many newly divorced individuals face.

Get Expert Help to Navigate Post-Divorce Taxes

If you’re uncertain about how your divorce impacts your tax filing or whether you need to file separately, don’t hesitate to seek professional guidance. At Divorce661, we offer free consultations to help you understand the rules, coordinate with your ex-spouse if needed, and protect your financial future.

Filing taxes after divorce doesn’t have to be overwhelming. With the right support, you can confidently manage your tax status, claim the correct deductions, and avoid unexpected liabilities.

Visit Divorce661.com to schedule your free consultation today and take the first step toward a smoother, more informed financial future after divorce.

When You MUST File A Joint Tax Return After Filing Divorce: Uncontested California Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

🤑 When You MUST File A Joint Tax Return After Filing Divorce: Uncontested California Divorce

Navigating the divorce process can be complicated, especially when it comes to financial matters like filing taxes. Many people wonder if they can wait to file for divorce until after tax season or if they can file taxes separately once they have started divorce proceedings. If you’re going through an uncontested divorce in California, here’s an important fact you need to know: you must file a joint tax return for the year you file your divorce, even if your divorce isn’t finalized yet.

Understanding the Divorce Timeline and Tax Filing Requirements

One common misconception is that you can delay filing for divorce until after tax season to avoid filing joint taxes. However, California law includes a mandatory six-month “cooling off” period after you file for divorce before it can be finalized. This waiting period means that even if you file for divorce early in the year, your divorce will not be legally complete until the following year at the earliest.

Because your divorce isn’t finalized during the tax year you file, the IRS requires you to file your taxes based on your marital status as of December 31 of that year. In other words, if you are still legally married on December 31, you must file a joint tax return, regardless of your divorce filing status.

Why You Must File Joint Taxes After Filing Divorce

Here’s the key takeaway: even if you have initiated divorce proceedings, you remain married in the eyes of the IRS until the divorce is finalized. This means:

  • You cannot file taxes as “single” or “head of household” while your divorce is pending.
  • You must file either a joint tax return with your spouse or, in some cases, married filing separately.
  • If you want to file jointly, you and your spouse must agree on the tax return details, which can be complicated during a divorce.

It’s important to plan ahead because the six-month waiting period delays your ability to file taxes as a single individual.

Planning Your Divorce and Tax Strategy

If you are considering divorce but want to manage your tax filing strategically, keep these points in mind:

  1. Prepare to file jointly or married filing separately for the current tax year: Since the divorce won’t be finalized, your filing options are limited.
  2. Consult a tax professional: Divorce impacts your tax liabilities, deductions, and credits. A professional can help you navigate the complexities.
  3. Communicate with your spouse: Cooperation during tax season can reduce stress and avoid errors in filing.
  4. Understand the timing of your divorce finalization: The six-month waiting period is mandatory in California, so plan your divorce timeline accordingly.

Conclusion

If you’ve filed for divorce in California but haven’t finalized it yet, you must file a joint tax return for that year. The six-month mandatory waiting period means your divorce won’t be official until next year, so your marital status for tax purposes remains married. Don’t delay filing taxes in hopes of filing separately—you must follow the IRS rules and file jointly or married filing separately.

Being aware of this important detail can save you from unexpected tax complications and help you plan your divorce and finances more effectively.

Remember: Divorce661 is here to help you understand the legal and financial aspects of uncontested California divorce, so you can move forward with confidence.

 

What to Expect When Filing Taxes for the First Time Post-Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

What to Expect When Filing Taxes for the First Time Post-Divorce

Navigating your first tax season after a divorce can feel overwhelming. Changes in filing status, dependent claims, and tax deductions often lead to confusion and costly mistakes. Understanding the key tax rules that come into play post-divorce is essential to avoid IRS issues and ensure you maximize your benefits. In this article, Tim Blankenship of Divorce661 breaks down everything you need to know about filing taxes after your divorce is finalized.

Filing Status: Single or Head of Household?

Your marital status as of December 31st of the tax year determines your tax filing status. If your divorce is finalized by then, you cannot file jointly with your ex-spouse. Instead, you’ll file either as single or head of household.

To qualify for the head of household status, two main criteria must be met:

  • You must have paid more than half the cost of maintaining your household.
  • You must have a qualifying dependent living with you for more than half the year.

This filing status can provide significant tax benefits, including a higher standard deduction and more favorable tax brackets compared to filing as single. Therefore, it’s important to carefully evaluate whether you qualify.

Who Gets to Claim the Kids?

One of the most common questions after divorce is: Who claims the children as dependents? The answer lies in your divorce judgment or custody agreement. Some parents alternate claiming the children on a yearly basis, while others assign dependents individually—one parent claims one child, the other parent claims the other.

Following the court order precisely is crucial to avoid conflicts with the IRS. For example, if your ex-spouse claims the children first on their tax return, it can trigger an IRS notice or audit. However, with proper documentation such as custody agreements and divorce decrees, these issues can be resolved quickly and smoothly.

Always keep thorough records supporting your claims. This helps prevent disputes and ensures you are prepared if the IRS questions your filing.

Understanding Support Payments: Spousal vs. Child Support

Tax treatment of support payments has changed significantly since the Tax Cuts and Jobs Act of 2017. Here’s what you need to know:

  • Spousal support (alimony) is not tax-deductible by the payer, nor is it taxable income for the recipient, for divorces finalized after December 31, 2018.
  • Child support has never been deductible by the payer or taxable to the recipient.

Understanding these distinctions is vital to accurately reporting your income and expenses during tax filing.

Practical Tips for a Smooth Tax Season Post-Divorce

In addition to understanding filing status and support payment rules, there are several practical steps to take to avoid surprises during tax season:

  • Update your address with the IRS. This ensures you receive all tax-related correspondence and notices promptly.
  • Adjust your W-4 form at work. Reflect your new filing status and any changes in income or withholding allowances to avoid underpayment or overpayment of taxes.
  • Stay organized. Keep copies of divorce decrees, custody agreements, and any documents related to support payments or dependent claims.

Real-Life Example: Resolving Dependent Claim Conflicts

Imagine a scenario where your ex-spouse files their tax return first and claims your children as dependents, even though your court order gives you that right for the year. This situation can lead to IRS complications, including notices or audits.

With proper legal documentation and timely response, these conflicts can be resolved quickly. Providing the IRS with a copy of your divorce judgment or custody agreement clarifies who is entitled to claim the dependents, allowing you to amend your return if necessary and avoid penalties.

Final Thoughts

Filing taxes after divorce introduces new rules and considerations that can significantly impact your financial situation. By understanding when to file as single or head of household, who claims the children, and how support payments are treated, you set yourself up for a smoother tax experience.

Keeping your information updated with the IRS, adjusting your withholding at work, and maintaining organized records are practical steps that will help you avoid common pitfalls during tax season.

If you’re feeling uncertain or want to ensure your tax filing aligns with your divorce terms, visit Divorce661.com for a free consultation. Expert guidance can help you stay compliant and confident as you navigate this new chapter.

How to Ensure Proper Tax Filings for the First Year After Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

How to Ensure Proper Tax Filings for the First Year After Divorce

Filing taxes after a divorce can be a tricky and confusing process, but getting it right is crucial to avoid delays, IRS complications, and unexpected surprises. I’m Tim Blankenship from Divorce661, and I want to guide you through the essentials of navigating your first tax season post-divorce with confidence and clarity.

Why Your Filing Status Matters

One of the most important factors in your post-divorce tax filing is your filing status. This isn’t just about whether you consider yourself divorced—it’s about the official date your divorce was finalized. The IRS uses the final judgment date, not the date you separated, to determine your status for the tax year.

If your divorce was finalized by December 31st of the tax year, you will file as either Single or Head of Household (if you qualify). However, if your divorce was finalized after January 1st, you are still considered legally married for that tax year, and must file accordingly.

Real Client Example

We once worked with a client who filed as “Single” even though her divorce finalized in January. The IRS flagged her return, causing a delay in her refund. We helped correct her filing status and referred her to a tax professional knowledgeable about divorce-related filings. This story highlights how vital it is to get your filing status right the first time.

Who Claims the Kids? Understanding Custodial Rules

Another common question is: Who gets to claim the children on tax returns? Your divorce agreement should clearly specify which parent claims the kids for tax purposes. If this isn’t spelled out, the IRS defaults to the custodial parent—the parent with whom the child spends the majority of nights.

To avoid disputes or surprises, ensure your divorce documents clearly state who claims the children. This clarity helps prevent IRS conflicts and ensures both parents know where they stand.

Spousal and Child Support: What You Need to Know

Many people wonder how spousal support and child support affect their taxes. Here’s the breakdown:

  • Spousal support (alimony) is not taxable income to the recipient and not deductible by the payer if your divorce was finalized after 2018.
  • Child support is never taxable income for the recipient and never deductible for the payer.

Understanding these nuances can save you from unexpected tax liabilities or missed deductions.

How Divorce661 Can Help You Navigate Post-Divorce Taxes

At Divorce661, we specialize in post-divorce tax guidance and support. We understand the unique challenges that come with filing taxes after a divorce and provide resources to help you avoid costly mistakes. Here’s what we offer:

  • Tax checklists designed specifically for post-divorce filing.
  • Flat-fee divorce services that include ongoing post-divorce support.
  • 100% remote assistance throughout California.
  • Referrals to tax professionals experienced in divorce-related returns.

Our mission is to ensure your tax season is as smooth and stress-free as possible. If you want to avoid filing errors and costly delays, we’re here to help.

Take Control of Your Post-Divorce Tax Journey

Filing taxes after a divorce requires attention to detail and an understanding of IRS rules. Remember:

  1. Check the final date of your divorce to determine your proper filing status.
  2. Clarify who claims your children on tax returns to avoid IRS disputes.
  3. Know how spousal and child support affect your taxes based on the latest laws.

If you’re feeling overwhelmed or unsure, don’t hesitate to seek expert help. Visit Divorce661.com for a free consultation and let us guide you through your first tax season after divorce. Filing correctly not only protects your refund but also gives you peace of mind.

Take control today and avoid costly surprises tomorrow.

How to Handle Tax Filing After Divorce? | Essential Guide for Navigating Taxes Post-Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

How to Handle Tax Filing After Divorce? | Essential Guide for Navigating Taxes Post-Divorce

Divorce is never an easy process, and beyond the emotional and legal complexities, there are important financial considerations that must be addressed—especially when it comes to filing your taxes. If you’ve recently finalized your divorce or are still navigating the process, understanding how to correctly file your taxes can save you from costly mistakes and headaches down the line.

In this comprehensive guide, we’ll walk through everything you need to know about filing your taxes after divorce, including how your filing status is determined, the tax implications of spousal and child support, and practical steps to take to ensure smooth tax filing. This information is based on expert insights from Tim Blankenship of Divorce661, who specializes in helping clients manage the legal and financial aspects of divorce in California.

Determining Your Tax Filing Status After Divorce

The first and most crucial step in filing your taxes post-divorce is understanding your correct filing status. The IRS bases your filing status on your marital status as of December 31st of the tax year. This means that even if your divorce was finalized on December 30th, you are considered divorced for that tax year, but if you were still legally married on December 31st, you must file as married for that year.

Filing Status Options

  • Single: If your divorce was finalized before December 31st, you will file as single.
  • Head of Household: This status may apply if you meet certain requirements, such as maintaining a home for a qualifying child. It can provide better tax benefits than filing as single.
  • Married Filing Jointly or Separately: If you were still legally married on December 31st, you must file as married, either jointly or separately.

Many people are tempted to file jointly out of habit, especially if they divorced late in the year. However, doing so can lead to confusion, delays, and even the need to amend your tax returns later. A real client example shared by Divorce661 involved a couple who filed jointly after their divorce was finalized that same year. This mistake caused unnecessary complications that could have been avoided by simply matching their filing status to their legal status on the last day of the year.

Understanding the Tax Treatment of Spousal and Child Support

One of the most common questions after divorce is how spousal and child support payments affect your taxes. The rules can be confusing, but here’s what you need to know, especially if your divorce was finalized in California.

Spousal Support (Alimony)

Prior to 2019, spousal support was taxable income to the recipient and deductible by the payer. However, for divorces finalized after December 31, 2018, this tax treatment has changed significantly. Currently:

  • Spousal support payments are not considered taxable income for the recipient.
  • Payers cannot deduct spousal support payments on their tax returns.

This change impacts how you report income and deductions on your tax return, so it’s vital to understand how your divorce date affects your tax responsibilities.

Child Support

Unlike spousal support, child support payments are never considered taxable income for the recipient, nor are they deductible by the payer. This rule has remained consistent regardless of when your divorce was finalized. It’s important to keep this in mind when planning your finances and tax filings post-divorce.

Adjusting Your Financial Documents After Divorce

Divorce often means a significant change in your financial situation. To avoid surprises at tax time, you’ll want to update your tax documents and withholdings accordingly.

Update Your W-4 Form at Work

Your W-4 determines how much federal income tax is withheld from your paycheck. After a divorce, your filing status and number of dependents may change, which means your withholding should be adjusted. Failing to update your W-4 can result in underpayment and potential penalties or a large tax bill when you file your return.

Review Estimated Tax Payments and Withholdings

If you make estimated tax payments or have additional withholdings, review these amounts in light of your new filing status and income. This proactive step helps you avoid underpayment penalties and ensures you’re not caught off guard by tax liabilities.

Why Consulting a Tax Professional is Crucial Post-Divorce

Taxes after divorce can be complex, especially when dealing with spousal support, child custody arrangements, and asset division. Working with a qualified tax professional can help you navigate these complexities effectively.

At Divorce661, we recommend that all clients consult with a tax expert after their divorce is finalized. A tax professional can help:

  • Verify your correct filing status.
  • Update your withholdings and estimated payments.
  • Understand the tax implications of your divorce agreement.
  • Identify deductions and credits you may still qualify for.
  • Prepare amended returns if necessary.

Getting this guidance early can save you time, money, and stress during tax season.

Real Client Experience: Avoiding Filing Mistakes

One of the best ways to understand the importance of proper tax filing after divorce is through real-world examples. A client of ours once filed their taxes jointly with their ex-spouse even though their divorce was finalized that year. This mistake led to confusion with the IRS, delays in processing their return, and ultimately the need to file an amended return.

This experience highlights a common pitfall: filing based on habit rather than the legal reality of your marital status. Always double-check your status as of December 31st and file accordingly. If you’re unsure, don’t hesitate to seek professional advice.

How Divorce661 Supports You Through Tax Filing After Divorce

Divorce661 is committed to providing not just legal support but also practical financial guidance throughout your divorce journey. Here’s how we help our clients handle their taxes post-divorce:

  • Clear guidance on tax filing status: We ensure you understand when to file as single, head of household, or married, so you avoid IRS complications.
  • Education on support payments: We explain how spousal and child support affect your taxes based on the latest laws.
  • Coordination with tax professionals: We connect you with trusted tax experts who can assist with withholdings, deductions, and tax preparation.
  • Post-divorce financial planning: We help you update your financial documents, including W-4s and estimated payments, to reflect your new situation.
  • Flat-fee divorce services: Our transparent pricing includes post-divorce tax guidance, so you know exactly what to expect.

Our goal is to make your divorce process—and subsequent tax filing—as smooth and stress-free as possible.

Final Tips for Filing Taxes After Divorce

  1. Check your marital status as of December 31st: This determines your filing status for the entire year.
  2. Know the tax rules for support payments: Spousal support rules changed after 2018; child support is never taxable or deductible.
  3. Update your W-4 and estimated payments: Adjust your withholdings to avoid surprises at tax time.
  4. Consult a tax professional: Expert advice can prevent costly mistakes and help you maximize your tax benefits.
  5. Keep good records: Maintain copies of your divorce decree, support agreements, and any tax documents related to your divorce.

Get Expert Help to Navigate Taxes After Divorce

If you’ve gone through a divorce and want to ensure your tax filing is accurate and stress-free, professional guidance is invaluable. At Divorce661, we offer a free consultation to help you understand your tax obligations and connect you with trusted resources.

Don’t let tax confusion add to the challenges of divorce. Visit Divorce661.com to schedule your free consultation and get the support you need to protect your financial future.

“Make sure your filing status matches your legal status on the last day of the year to avoid issues with the IRS.” – Tim Blankenship, Divorce661

Have Questions About Taxes After Divorce?

What’s your biggest tax question following a divorce? Share your thoughts and concerns in the comments or reach out for personalized advice. Navigating post-divorce taxes can be complicated, but with the right information and support, you can file confidently and protect your financial well-being.