During the divorce process, Texas couples spend a great deal of time and effort reviewing their financial standing and making decisions on how to divide the marital wealth that they have amassed. This process can serve a valuable function, as many individuals are unaware of the details of their financial standing, and splitting up their assets entails delving into the details of one’s financial life. This process can serve as a starting point for a new approach to financial stability, but many spouses fail to take advantage of this silver lining within a military divorce.
In many cases, divorced couples remain financially entangled long after they have no need to do so. This can take the form of remaining listed on each other’s bank accounts or credit cards, or in sharing ownership of property that could be sold and the profits divided. However, there is one area of finances that should be given careful consideration in the years following a divorce.
Divorced or separated couples who maintain a tax connection are taking a considerable risk. In fact, tax courts are very familiar with cases in which divorced or divorcing spouses take advantage of their status as the family’s financial manager to make changes to tax returns without the authorization of the other party. In many cases, there is very little recourse available to a former spouse who allowed his or her ex to prepare their tax return and is displeased with the result.
The end of a Texas marriage marks a significant life change for all involved. In the majority of cases, the best way to move forward is to fully disengage with one’s former spouse. In the case of financial matters, going one’s separate way after a military divorce is not only an emotionally healthy choice, but a financially savvy one, as well.
Source: Forbes, Post Divorce Tax Intimacy Can Be Riskier Than Post Divorce Sex, Peter J. Reilly, Jan. 7, 2014