Monday, November 07, 2005

Divorce Judgment Nisi and Tax Filing Status

This is the time of year when we begin to get tax questions, and one we've received more than once recently is if Husband and Wife have a divorce judgment nisi, but it will not be final until next year, do they file as married or single? According to Department of Revenue Directive 89-3, "Since the material (and tax) status of a divorced or divorcing individual depends on the nature of the judgment of divorce in effect at the close of the tax year, if the judgment nisi is in effect at that time, the taxpayer is married and must file either jointly or as married filing separately. If the judgment nisi has then become absolute, the taxpayer's filing status is 'single'." You can find this information and more at Law About Taxation and at Law About Divorce.