If i divorced in 2007 do we file jointly

But many divorcing couples qualify to exclude part of those gains, which helps to avoid getting hit with a big tax bill. In many cases, couples must divide retirement benefits when a marriage ends. QDROs provide instructions to pension plan administrators, specifying that part of a pension needs to be paid to an alternate payee: the ex-spouse.

QDROs need to be specific about who will receive payments, the schedule for when those payments will be made, and the percentage or amount of benefits that are to be paid to the alternate payee. Finally, another key issue to consider when filing taxes after divorce: Whether you can take a tax deduction for all those expensive legal fees you had to pay to end your marriage.

Unfortunately, the answer is probably no. And although previously you might have been able to deduct legal fees you paid for tax advice in connection with getting a divorce or to get alimony, tax reform has changed things.

Notify the IRS of your new filing status, make sure you and your ex are clear on who gets to claim children as dependents, and plan for any capital gains you may realize on the sale of a home.

She has more than a dozen years of experience in tax, accounting and business operations. Christina founded her own accounting consultancy and managed it for more than six years.

She codeveloped an online DIY tax-preparation product, serving as chief operating officer for seven years. You can find her on LinkedIn. Image: Estranged couple sitting back to back on opposite ends of a couch wondering how to file their taxes after their divorce. In a Nutshell Divorce can profoundly change your life, as well as your taxes.

Here are some things to know about filing taxes after divorce. However, if the divorce is final as of December 31, you can't file jointly with your ex-spouse. You must file as either "Single" or "Head of household. Discuss the pros and cons of a joint return with your tax advisor and your attorney.

Usually, but not always, your tax burden will be lower filing jointly, depending on your respective incomes, deductions, and credits. The main disadvantage of filing jointly is that both spouses are jointly and severally liable for taxes on the return, including any tax deficiencies, interest, and penalties.

You can protect against tax burdens to some extent with a Tax Indemnification Agreement, discussed below. Also, the IRS may allow relief to a spouse who files jointly. Spouses whether happily married or going through a divorce can't use tax filings as a bargaining tool. In most cases, spouses must agree to file a joint return. If you're legally married, the IRS permits you to file joint tax returns but does not require you to file together.

In some cases, filing separately from your spouse is financially beneficial. In other cases, spouses can utilize the benefits of tax breaks reserved for married couples. A court will not order unwilling spouses to file a joint return. The IRS requires both spouses to sign a joint tax return. If one spouse fails to sign, the IRS will likely flag it as incomplete and return it to the couple so they can fix the missing signature. If you are your spouse's legal power of attorney, you may submit and sign the tax return for your spouse, but you must include a copy of a power of attorney with your return.

In rare circumstances, a spouse is unable to sign due to a physical limitation. In that case, the signing spouse can sign with the incapacitated spouse's oral permission but must also include a statement "signed by husband or wife.

If you and your spouse agreed to file a joint tax return, it's important that your marital settlement agreement or judgment, or a separate agreement , addresses how you'll deal with any tax liability or refunds. If you expect a check refund, ensure the IRS issues a check paid to both spouses or that you have a written agreement that the recipient will pay the other spouse any share owed.

You should also include a time frame in which the recipient must share the funds. If the IRS issues an electronic refund direct deposit ask the IRS to route the refund to a joint account or prepare a written agreement. You don't have to share tax liability or refunds equally. You can do whatever is fair and consistent with your overall property division, but whatever you do, have a clear written agreement. One common approach for dealing with taxes owed is to prorate tax liability using a ratio based on each spouse's income.

Divorcing spouses should also prepare a written agreement that explains each spouse's portion of the liability and the requirements for paying on-time. If you will file taxes jointly and one spouse is responsible for preparing the returns, you should consider entering a stipulation agreement regarding tax indemnification. In some cases, the judge will require that one spouse claim the kids on even years, and the other on odd, or vice versa. Denise Caldwell is a finance writer who has been writing on taxation and finance since Her articles appear regularly on websites such as Gomestic.

She has taken what she learned while working at the IRS to provide readers with helpful tax and finance tips. Caldwell received a Bachelor of Arts in political science from Howard University. Share It. Internal Revenue Service. Tax Foundation.

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