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If your marriage is failing but you’re not ready for a divorce, a legal separation can provide the freedom you need without giving up the benefits of a being married. Some of the most important advantages of marriage are lower tax rates, deductions, and credits that are only available to married couples. Fortunately, a legal separation doesn’t impact your taxes, although you may have more options to suit your specific situation.

Legal Separation & Taxes

Filing Status

legal separationAlthough you may be separated, you still have the option of filing a joint return with your spouse, with all the tax benefits that marriage brings. However, this does require you to cooperate with your spouse, exchanging documents and deciding how to divide your refund. If your relationship is especially contentious, you may decide to use the “married, filed singly” status. You may lose some deductions and credits, but you won’t have to coordinate with your spouse.

Head of Household

If your spouse hasn’t lived in your house for six months and isn’t expected to return, you may be able to file as Head of Household, which could reduce your liability by thousands of dollars. To qualify, you must have paid more than half of the expenses for your home, and lived in that house for most of the year.

Claiming Your Children

In North Carolina and many other states, separation is arranged through private contracts between parties, not the court. These contracts should include a child custody arrangement and decide who should claim the children on their taxes if you elect to file separate returns.
 

The Fulcher Law Firm is a full service law firm conveniently located in the heart of Albemarle, North Carolina. Our firm has over 18 years of experience, and we are proud to serve the residents and businesses of Stanly County.  We help people in a wide range of family law matters such as divorce, legal separations, alimony, child custody and support issues. Visit us online for more on our family law services, follow our Twitter for legal news and updates, or call (704) 984-6060 to arrange your initial consultation.

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