With summer coming to a close and school back in session, we are quickly approaching the end of another year. Statistically, this is a time when many people start thinking about divorce, and this raises an important question: Should you get divorced before the end of the year?
As we discuss below, there can be benefits to finalizing a divorce before the end of the year. Some of these benefits are more significant than others—and while some may be worth considering when it comes to the timing of your divorce, others shouldn’t factor too heavily into your decision-making. Getting divorced is a big decision with a lifetime of implications, so, ultimately, you must focus on doing what is best for you (and your children, if you have any) long-term.
Benefits of Finalizing a Divorce Before the End of the Year
What are the benefits of finalizing a divorce before the end of the year? Here are a few examples:
1. Simplifying Tax Season
Finalizing a divorce before the end of the year can simplify tax season for many (soon-to-be former) spouses. As the Internal Revenue Service (IRS) explains, “If you’re legally separated or divorced at the end of the year [y]ou must file as single for that tax year unless you’re eligible to file as head of household or you remarry by the end of the year.” If you file as single, you won’t need to calculate and report your spouse’s income and deductions—which can simplify the filing process.
On the other hand, if you are married at the end of the year, “[y]ou must file as married for that tax year.” If you don’t file your tax returns until April, you must deal with your former spouse after your divorce.
2. Protecting Post-New Year Compensation and Bonuses
Under Illinois law, any spouse’s income during their marriage qualifies as marital property (unless otherwise agreed). This is true even for income earned during the divorce process. As a result, if you are expecting a bonus or any other form of additional compensation after the New Year, finalizing your divorce before December 31 could also have financial benefits.
With that said, this could also end up being a point of discussion during your divorce, and it could factor into your spouse’s decision-making regarding property division and alimony (and timing). Additionally, while it’s okay if you don’t know how much your bonus will be, you cannot hide pertinent financial information from your spouse during the divorce process.
3. Getting a Fresh Start
Another reason many spouses try to finalize their divorces before the end of the year is that it gives them a fresh start. Rather than starting the New Year with a divorce pending, they can focus on what lies ahead. Even if this is only symbolic, it can still be a powerful motivator and provide a renewed perspective for many people.
Reasons Not to Finalize a Divorce Before the End of the Year
While there can be benefits to finalizing your divorce before the end of the year, there may also be reasons to consider not finalizing your divorce by December 31, 2024. For example:
1. Filing Separate Income Taxes Can Increase Your Collective Tax Liability
While filing your taxes separately can simplify tax season, it can also increase your and your spouse’s collective tax liability. This is because married couples enjoy certain tax benefits unavailable to single filers. As a result, even if you don’t know exactly how much you will have to pay on April 15, it may still be worth considering the potential tax implications of your divorce during the process—and preserving your ability to file as “married” if it is beneficial to do so.
2. Maintaining Your Health Insurance Coverage for Another Year
If you have health insurance through your spouse’s employment, waiting to finalize your divorce could also allow you to keep your coverage for 2025. This, too, will often be a point of discussion during the divorce process. Even though you will be eligible for special enrollment in the Health Insurance Marketplace after your divorce, keeping your existing coverage for another year may still be most cost-effective.
3. Not Rushing the Divorce Process
Finally, you should not focus on finalizing your divorce before the end of the year if this means rushing the process. Going through a divorce requires careful decision-making, and many of your decisions now will affect your life for years. So, suppose you need time to gather information, consider your options, or work out a mutually agreeable resolution. In that case, these should be your priorities—not trying to finalize your divorce by a specific date.
What is Best for You and Your Children?
Regardless of when you go through the divorce process, it is crucial to focus on doing what is best for you and your children. There are many factors to consider, and you have many options available. This is true concerning all aspects of the divorce process, including:
- Property and debt division
- Parenting time and parental responsibilities
- Child support and spousal support
Ensuring you do what is best for you and your children starts with seeking personalized legal advice. An experienced divorce lawyer can help you in many ways, including ways that can save you money in the long term. If you are considering filing for divorce before the end of 2024, we invite you to contact us for more information.
Schedule a Free Consultation with Gurnee, IL, Divorce Lawyer Deanna J. Bowen
Would you like to know more about the considerations involved in deciding when to try to finalize your divorce? If so, we encourage you to get in touch. To schedule a free consultation with Gurnee, IL, divorce lawyer Deanna J. Bowen, call us at 847-623-4002 today.
