Stacy Francis Featured Article on Kiplinger about Taxes and Divorce
By: Francis Financial
October 18, 2021
Stacy Francis, certified financial planner and CEO of Francis Financial has a featured article on Kiplinger that outlines the potential tax implications of getting a divorce. Now more than ever couples are asking questions about divorce with nearly twice as many people searching “file for divorce” in Google over the last year. With Biden’s new tax proposal specifically targeting high earning married couples – divorce may become a more financially appealing option.
The American Families Plan proposal “amplifies the marriage penalty that comes into play when the taxes a couple pays exceed what they would have paid if they had remained single with the same incomes,” Francis writes. While this does not mean getting a divorce strictly for tax purposes is a good plan, it does imply that couples who plan to divorce may want to proceed sooner rather than later.
If a couple wants to save on taxes without getting a divorce – there are plenty of tax management strategies to aid in reducing taxes.“Couples can reduce their taxable income by maxing out their retirement plans at work and participating in employer-sponsored savings accounts for child care and health care. It would also be wise to speak to your financial adviser about tax-loss harvesting with your investments,” Avani Ramnani, Managing Director of Francis Financial adds.