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(Here are some divorce tax tips if you don't trust your husband's accounting.)If you were divorced after 12/31 and you qualify, filing as head of household versus single can also save considerable tax dollars.

Your best course of action is to consult with a tax professional regarding these options.

Capital gains, income tax, and alimony are just a few of the areas that may be impacted.


Below is an article by William Donaldson that outlines some major areas to consider in your divorce negotiations.On the other hand, the payer of alimony receives a tax deduction, so the same ,000 payment actually costs the taxpayer ,000 assuming the same tax bracket.(: Beginning in 2019, alimony payments are neither deductible for the paying spouse nor taxable for the receiving spouse.)Filing status is an important decision after the divorce.Each year there are nearly 1 million divorces in the United States, or about 50% of all marriages (2002 United States Census Bureau statistics).

The real tragedy, however, is the financial devastation that occurs to many individuals after their divorce. Whatever the reason, this outcome can be significantly improved upon, if not altogether avoided, if you first understand the seven most costly financial mistakes commonly made in divorce settlements.For example, a bank savings account is highly liquid, because you can simply withdraw funds from an ATM when you need them.



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