Marital Status Affects Your Taxes

Your marital status can have a major impact on your taxes. Sometimes changing the date for a wedding or the timing of a divorce can be a major tax saver. If you and your spouse-to-be have similar incomes, you may become subject to the marriage penalty and pay higher taxes as a married couple than you would as singles. A divorce certainly requires some tax planning. How you structure support payments, who gets to claim the tax exemptions for dependent children, and how you split up assets can make a huge tax difference to both parties.