The financial aspects of a Texas divorce can be a source of conflict or a road map for the future, depending on how couples approach money matters. One issue that some couples may not immediately consider is the tax consequences of a divorce. According to the CEO of Wevorce, a website aimed at helping couples divorce amicably, property division has a tendency to grow in levels of complication extremely quickly.
A CPA at Wevorce notes that some of divorce's most taxable events happen after a divorce, rather than before. The first question of divorce-related taxes, of course, is what is one's filing status? One's tax filing status is what their legal status is on the final day of the previous year, December 31. So, if a couple's divorce is finalized on that day, each party's filing status will be single. Former spouses may be able to file as a couple, even if living separately, but that may or may not be financially beneficial depending on the circumstances.