One of the smartest things you can do when preparing for divorce is to understand your financial situation. Doing so saves time and money, makes your lawyer’s job easier, and gives you peace of mind that you have everything you need right at your fingertips. There are plenty of examples of relevant paperwork you’ll want to start gathering now, including bank statements, mortgage information, and retirement account information. But don’t underestimate what your tax return can reveal.
Your tax return (Form 1040 and supporting docs) will likely be the best place to verify all sources of income, locate additional assets when supporting documents aren’t enough, and provide a complete picture of your marital financial situation.
Without confusing you with too much tax talk, here are 7 pieces of financial information you can find on your tax return:
- Wages, salary, tips
- Business income or losses
- Investment gains or losses
- Taxable and tax-exempt interest
- IRA withdrawals
- Pension and annuity distributions
- Dividends paid on assets owned
What if I Don’t Know How to Read My Tax Return?
No one expects you to become a savvy tax professional when preparing for divorce. If you can find this information and familiarize yourself with them, that’s great news. If not, simply give your tax return to your attorney. They’ll know where to look.
Your attorney will likely ask for complete copies of the past 2-3 years of tax returns. This goes beyond the first or second main pages of the 1040 tax return and includes all W-2s, 1099s, and supporting documentation. If your spouse didn’t provide you with a copy of the full return, or you can’t find it, ask your CPA or request a transcript/hard copy from the IRS.
Please call Christman | Daniell Attorneys for your legal needs today!
Are you looking for family law services in Texas? Christman | Daniell Attorneys is your premier choice. With years of experience and a deep understanding of the legal landscape in cities throughout the Dallas-Fort Worth area, our skilled team is dedicated to helping families navigate complex legal matters. Whether it’s divorce, child custody, or adoption, trust Christman | Daniell Attorneys to provide compassionate and effective representation for all your family law needs.
Please consult an attorney for advice about your individual situation. The material on this website and in this or any blog article we publish are for informational purposes only and do not constitute legal advice. The attorneys at Christman | Daniell Attorneys believe in tailoring legal advice and solutions to your own personal circumstances.
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