Before You File

My post today is for all of you eager beavers who get their taxes filed as soon as that W-2 lands in their lap. Marrying a divorced man doesn’t just mean filing jointly, it also means your own net worth may be affected by his support obligations.

If your hubby owes back child support, there’s a good chance that your tax refund will be applied to that balance. Not only that, you may never get it back. Even if your guy really doesn’t owe any back child support, and you can prove it, if the “computer” thinks he does, you’re out of luck.

Likewise, if your guy owes back taxes, your refund could be taken to pay off that balance. Again, once you’ve filed jointly, there’s very little recourse with respect to your refund.

So what’s a girl to do? File a separate tax return.

As much as you were looking forward to signing your tax return together and then toasting the milestone with a lovely glass of Cabernet Port, you’re better off postponing that moment until your guy is free of tax debt and/or child support obligations.

There are some drawbacks to filing separately when married, such as the loss of a few deductions, but there are also a whole host of other reasons why filing separately is the best course of action for high net worth women (and wannabes).

Even if you make so much money that a tax refund is a distant memory, it’s important to consider the potential consequences filing jointly may have on your finances.

It’s a complicated subject, one that you can learn more about in my book, Every Single Girl’s Guide to Her Future Husband’s Last Divorce. I also go into detail about the various options you have to further protect yourself from your husband’s past.

In addition to reading my book I also recommend you discuss these issues with your CPA. If you don’t have one, get one. You’re playing with the grownups now. Bring a copy of my book with you to your consultation – not every CPA is well versed on the subject.

Before you file, get educated about the state of your hubby’s finances, and the pros and cons of filing jointly. The deadline is April 15th, you know. You don’t always have to be the first in line!