The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Owing too much Date:  7/25/1999  8:13 PM
Author:  hghcpa Number:  17650 of 128043

Your situation brings up an interesting scenario for couples in the midst of a divorce.

State law presides in such cases - yours is pretty clean in that it seems to be a relatively amicable split - seperated in March; divorced in September.

You must not have had any property disputes whatsoever.

If your divorce had not been final until sometime the following year then the laws of the state in which you reside would determine your marital status at year end.

For instance, in NC you are legally married until the terms of the divorce decree have been approved by the courts.

IOW - if you are only separated and the divorce decree has not been issued then you are still deemed to be married in NC.

This leads usually to some interesting discussions as far as the "limbo" year is concerned - MFS or MFJ (joint is usually cheaper).

There is really not too much you can do unless you qualify for an IRA or some other type of tax deferred savings plan - my advice is to max them out; set your goals on as fast a settlement as possible and keep the legal fees to a minimum. These costs are usually more exorbitant and costly than the taxes.


Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us