As most Ohio couples already know, there are many issues to consider when getting a divorce. One issue that couples using collaborative divorce, as well as other processes, may want to consider is the tax effect of their divorce.

Most of the time, people will pay close attention to the division of property in divorce--such as the residence, retirement plans and insurance policies, but some people forget that there may be special tax rules applied to these assets that need to be considered.

In addition, there is the question of tax filing status. So long as a divorce is not finalized by Dec. 31, the parties may file a joint tax return for that year. However, the parties should be sure that this makes the best financial sense for their situation. In some cases, it may be better for a couple to file separately even though the divorce has not yet been finalized.

If there are children involved, who claims them as dependents on tax returns may also be an issue. For those who have joint custody, it may make more sense for them to alternate claiming the children on tax returns. However, a parent who is the custodial parent and has the children the majority of the time may want to keep the exemption every year.

It is also important to account for alimony or spousal support, which may be tax deductible where child support is not.

Resolving the tax issues in a divorce is not always possible to do alone. Ohio couples who are working together and using collaborative divorce may have access to a financial adviser or divorce attorneys who can help the couple make sure they have reviewed all of the tax implications that come with the divorce. In this way, the couple may end up saving themselves time, money and headaches this spring.

Source: The Willits News, "TAXES & FINANCES: Watch for tax angles in divorce agreements," Jim AngellIf, Nov. 7, 2012