Conference quark::mennotes-v1

    Jim,
    
    	There never seems to be a financial "Good" time. Unless your into
    lots of pain. But then you could try shooting yourself with a .45
    magnum. Its only painful for a minute. The IRS never treats anyone. You
    can file seperately when and only when your seperation paperwork is
    filed. Other wise, if you make $50,000 and she makes $5,000 because its
    her own choosing, as it was mine to stock shelves in a convient store
    in Maine after making $20,000 as a paistry chief, you are obligated to
    split all IRS returns. Its half hers, as what is in your checking
    account, or with Erik and the estates. Even your tools and golf clubs,
    unless they are gifts. I know a guy who has $$$$ tied up in tools to
    work as a shade tree mechanic, thats guys who like to tinker and
    sometimes make alittle unclaimed $$$. Well he is now fighting for it
    with the courts and etc. Gee, what do you do? Poor guy can't even get
    his wood chipper back! Wow! Wounder if there is a hidden message
    there?8^)

To answer your question - if you are still legally married on December 31,
you are considered, for tax purposes, to have been married all that year.
Conversely, if you are unmarried on Dec. 31, you are considered to have been
unmarried all year.  There is a special exception for "legal separation",
for which you should read the IRS manuals closely.

Whether or not it is an advantage to have the divorce finalized before or
after Dec. 31 depends very much on your individual tax situation.  If
your to-be-ex-spouse has an income close to yours, it might be beneficial 
to be single as of the end of the year.  If your incomes are vastly different,
it may be advantageous to file as married.

The IRS manuals are really rather clear on this, and there are publications
dealing with tax treatment of divorce.  If you're still unsure, then
consult a qualified tax accountant.

				Steve

    I'd heard that the IRS has erected some barrier to the practice of
    getting divorced on December 31 and remarried on January 1, to have
    unmarried filing status and save income taxes. Perhaps it's some rule
    about having to wait some time period before remarrying?
    
    - Hoyt

I haven't noticed a specific rule on that, but I read that they had
cracked down on this.  I don't know what basis they use.  But it isn't
really relevant to the discussion.

			Steve

The best time of the year to get divorced is before you buy the house...

    >The best time of the year to get divorced is before you buy the
    house...
    
    ...or before you take out a contract on the SO.:) Yha know? As in that
    Smart T shirt.
    
    "Murder or Divorce"
         frount
    
    
    "Make the Smart choice"
          back 
    

	The IRS pub is 504 ... good info.  Too, depending upon who gets the
	kids, prior to July 1st covers the Head og Household bit.

	As stated, check with a good consultant.

	AA

    
    Re. -.7 (COMET::ALBERTUS)
    > prior to July 1st covers the Head og Household bit.-
    
    Does this mean the head of household advantage is going away?
    
    I've been out of touch with the IRS laws recently.  Dare I hope?
    
    Thanks.
    Karen

I don't think July 1 is any magic date.  The test for "Head of Household"
is that the child lived with you for more than 50% of the year - that
doesn't have to be continuously or starting January 1.  As far as I know,
there are no changes to the way this works.

				Steve

    Thanks, Steve.
    
    K.