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Who Claims Head of Household When You Divorce?

With so many things to remember to have written into your divorce agreement, many separating couples forget to discuss with each other how their taxes will be impacted.

When you and your spouse choose the collaborative divorce process, you are paired with a team of experts such as mental health, divorce coaches, professionals, attorneys, and financial neutrals.

One of the roles the financial neutral plays is to speak to both of you about what your future will hold in regard to tax liabilities and what each person is expected to claim and not claim.

One of the common questions is who will claim head of household once the divorce is finalized. And to be honest, our answers aren’t simple, depending on the circumstances and custody arrangements.

Once divorced, each person will file separately.

If you have children, you will need to decide who will claim the head of household status, as this can significantly impact your tax obligations.

To claim head of a household status, you must:

  • Be unmarried or considered unmarried on the last day of the year
  • Paid more than half of the cost of maintaining your home for the year
  • A qualifying person, such as your child, must have lived with you in the home for more than half of the year
  • Can be determined by your custody arrangement and if you have decided to take turns claiming your child on your taxes

It is very important that during your divorce discussions that tax responsibilities are addressed both for the year your divorce was finalized and in the future.

Our financial neutral will consider all incomes, assets, and debts, then create a plan that could be beneficial to both of you while considering the tax implications your divorce will trigger.

A Better DivorceTM is an interdisciplinary group of professionals committed to non-court, non-confrontational solutions for family law matters.

We provide you with access to qualified professionals who can help you make informed decisions about your options for divorce. Contact us today!

Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.

Posted in Divorce, Taxes.