Clients frequently ask us three questions about their taxes after divorce. They want to know:

• When does my filing status change?
• Who gets to claim the tax credit for the children?
• Who gets to deduct the house?

Change in Filing Status

Your filing status changes for the tax year in which your divorce is finalized. So if you get divorced before December 31, then for tax purposes you are considered unmarried for all of that year and you can file as “Single” or “Head of Household.” Consult your tax advisor to consider your specific circumstances.

Tax Credits for the Children

The second common question is “can my spouse and I both deduct the kids?” And the answer is “no.”

Usually, it is the custodial parent who gets the tax exemption or credit. However, a custodial parent can relinquish the right to claim a child as a dependent if they sign an IRS release form and the non-custodial parent attaches the form to their tax return.

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