Compassionate About People. Passionate About The Law.

The tax advantages of a New Year's Eve divorce

January traditionally brings a large spike in divorce filings. Couples who found that additional time spent together over the holidays didn't help their relationship -- and perhaps magnified their issues -- decide once and for all to call it quits. Some decide to start the new year by ending an unhappy or even toxic relationship flood New York family law attorneys' offices.

However, many people strategized the timing of their divorce so that it was final on Dec. 31, 2016. The primary reason for that is so that they can then file their 2017 taxes as "single" for the entire year. This may make their 2016 filings easier as well.

For people with a considerable amount of money, being able to file as a single person instead of a married one (whether you file jointly or separately) can mean a significant tax savings. It's probably a good idea to talk with a tax professional first to determine whether the tax benefit is worth dealing with that specific end-of-year deadline.

If you're considering using this strategy for the coming year, it's important to note that you need to begin the divorce process prior to the end of the year. Even if it's a simple divorce, you need to have at least filed the papers prior to Dec. 31.

Divorce is a largely-financial process, particularly for those with considerable assets to divide. It's essential to plan wisely and not rush the process. In addition to an experienced New York family law attorney, it's a good idea to have your own financial and tax advisors (not those you've shared with your spouse) on your team to protect your interests.

Source: Bravo TV, "Why Are So Many New Yorkers Rushing To Get a Divorce This Week? We Explain," Marianne Garvey, Dec. 29, 2016

No Comments

Leave a comment
Comment Information
  • Super Layers
  • AV | Martindale-Hubbell lawyer ratings
  • Marquis Who's Who
  • American Bar Association | Defending Liberty Pursuing Justice
  • Phi Alpha Delta Law Fraternity International
  • G
Email Us For A Response

Contact Us For The Answers You Need Attorney Philip A. Greenberg represents clients in New York and New Jersey. To schedule a consultation with Mr. Greenberg, call 646-363-6807 or contact him by e-mail.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Philip A. Greenberg, P.C., Attorneys at Law
10 Park Avenue
Suite 2A
New York, NY 10016

Phone: 646-363-6807
Fax: 212-279-0466
Map & Directions

Philip A. Greenberg, P.C., Attorneys at Law