Tax season good time to take control of your financial future
With the annual deadline for filing taxes approaching, it is a good time to take control of your financial future. Divorce lawyer, Carlton Marcyan, executive partner at the nation's largest matrimonial law firm, Schiller, DuCanto & Fleck, says this is especially true for individuals who are considering or have recently been divorced.
“There are so many things that are beyond control: the value of our homes, the performance of our investments, yet a life changing event such as divorce, calls for sensible financial decision making,” notes Marcyan, a divorce lawyer who is also a certified public accountant and financial planner. He concedes for some it is easy to just sit back and wait for things to get better or let the professionals take care of matters, especially for the spouse who before wasn't involved in the process. Yet, “this is the time for divorcing individuals to accept financial reality, learn what options are available and work with trusted advisors to achieve the best possible results for their financial future,” advises Marcyan.
During tax filing season, and year-round, Marcyan offers these tips to take charge of your financial future:
Financial Divorce Tip #1 – Be part of the process
The better understanding you have of your financial situation, the more control you will have. Ask good, common sense questions. Surround yourself with professionals who are experts on financial and tax issues related to divorce and can explain the impact on your short and long-term future.
Financial Divorce Tip #2 - Keep good records and track your finances
In addition to keeping copies of all tax returns filed during your marriage, keep a copy of mortgage applications and refinancing and its related documents. It provides an excellent snapshot of your finances at a given point and time. Establish a budget and use helpful programs such as Quicken or QuickBooks to track your finances. With all the economic uncertainty, this should be done quarterly and not just at tax time.
Financial Divorce Tip #3 – Make informed income tax decisions
You may be divorced but if alimony, maintenance, or child support are part of your financial settlement, the annual filing of tax returns will require communication with your former spouse. The Internal Revenue Service now matches tax deductions for alimony payments by one former spouse with the taxable alimony income reported by the other. To avoid needless ambiguity and potential problems with the IRS, you may consider using the same accountant. If you are separated, you should work toward filing statuses that can result in the best tax outcomes for both parties.
Most important, whether your tax return was prepared by your former spouse or a professional accountant, it is important to review and understand the tax return you are signing. Your signature will hold you liable for the information reported in your tax return.
Effectively managing your financial situation today requires more sophistication than ever before. Marcyan concludes, an investment in learning guided by a trusted advisor will lead to strategic decisions that will have a positive return for both spouses.
Carlton Marcyan is the Executive Committee Chair of Schiller DuCanto & Fleck LLP, the largest family law firm in the United States. Marcyan was named Best Lawyers® Chicago Family Lawyer of the Year in 2012 and Chicago Collaborative Lawyer of the Year in 2011.
With offices in Chicago, Lake Forest and Wheaton, Schiller DuCanto and Fleck LLP helps clients going through divorce and family transitions to achieve the best possible outcome. The firm's blog Family Law Topics provides helpful information on topics relating to Illinois divorce law. More information on the firm can be found at: www.sdflaw.com