Truth 16. Tax implications of divorce

Divorce has many consequences, including some potentially dramatic changes to your tax life.

Your filing status likely will go, at least for a while, to single or, depending upon custody arrangements, head of household. Status change alone will affect your tax rates and standard deduction amounts.

Some filing issues could show up before the divorce decree is issued. In many cases, a couple on the outs decides to file separate returns. Talk with not only your divorce attorney, but also your financial and tax adviser before making this change. Couples who file jointly usually enjoy a lower tax liability than do husbands and wives who send in their 1040s separately.

If you are going through a ...

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