When contemplating divorce, one of the most significant decisions you may face is whether to file before or after the New Year. In Texas, the timing of your divorce filing can impact a variety of financial, legal, and emotional aspects of the process. From tax implications to asset division, your choice could have long-term consequences. In this blog, we explore the considerations for filing a divorce before or after the New Year in Texas, to help you make an informed decision.
Timing Your Divorce Filing in Texas 
Divorce is never easy, and making decisions about when to file can be just as challenging. For many people, the timing of their divorce is influenced by multiple factors—financial considerations, the emotional toll of the process, and the need to prepare for the legal implications. For couples in Texas, deciding whether to file for divorce before or after the New Year involves careful consideration.
While there are some obvious emotional and logistical challenges tied to the holidays, the year-end period also brings with it certain financial and legal factors that may influence your decision to file for divorce. In this blog, we’ll break down the pros and cons of filing for divorce before and after the New Year, specifically in the context of Texas laws and tax implications.
Tax Considerations When Filing for Divorce Before the New Year
One of the first factors to consider when deciding whether to file for divorce before or after the New Year in Texas is the impact on your taxes. The timing of your divorce filing could affect your tax status, your filing status, and your financial situation in significant ways. Below, we explore how filing before the New Year could work to your advantage—or disadvantage—when it comes to taxes.
Filing Status and Tax Filing Implications
If you file for divorce before the end of the year, you may still be able to file taxes as “married filing jointly” for that year. This could potentially provide significant financial benefits, including a higher standard deduction, which would otherwise be unavailable if you file separately.
- Joint Filing Benefits: If you and your spouse decide to file jointly before the end of the year, you could take advantage of certain tax deductions, such as the child tax credit, and receive a larger refund. For married couples with children, this could mean more money back from the IRS for the tax year in which you file.
- Separate Filing Considerations: If you wait until after the New Year to file for divorce, you may need to file separately for the tax year, which could mean losing out on these benefits. Depending on your income level and other factors, filing separately can increase your taxable income and reduce the amount of deductions or credits you are eligible to claim.
Alimony and Child Support Deductions
For divorces finalized before the New Year, alimony is tax-deductible for the paying spouse, and the recipient must pay taxes on it as income. However, for divorces finalized after December 31, 2018, the tax treatment of alimony changed under the Tax Cuts and Jobs Act. Divorces filed after this date will not have the same tax-deductible treatment for alimony payments.
- Preserving Alimony Deductions: If you expect to receive or pay alimony, filing before the New Year could preserve the alimony tax deductions for the paying spouse and the income tax for the recipient.
Emotional and Logistical Considerations: Divorce Before or After the Holidays?
In addition to the financial and tax implications, timing your divorce filing can have emotional and logistical consequences, especially when the holidays are approaching. Divorce filings during the holiday season can be emotionally taxing, and for families with children, it can be particularly challenging to navigate custody arrangements and holiday schedules. Below, we explore the emotional factors that may influence your decision.
Holiday Stress and Divorce
The holidays are often a time of family togetherness, but they can also bring emotional stress, particularly if you’re already facing the emotional upheaval of divorce. For many, the idea of enduring the holidays with the added pressure of divorce can be overwhelming. Filing for divorce before the New Year may allow you to have a clean break before the New Year begins, but it also means enduring the stress of making major life decisions during a busy season.
- Emotional Clarity: Some individuals may feel a sense of relief by filing for divorce before the end of the year, knowing they have taken the first step toward moving on. However, others may find that the holiday season adds to the stress and confusion surrounding their divorce.
- Benefit of Waiting: For others, waiting until after the New Year to file might offer a chance to enjoy a period of emotional clarity and reflection. This could allow you to approach the divorce process more thoughtfully after the holiday season ends.
Custody Arrangements and Children’s Well-Being
For parents with children, the timing of a divorce can have a significant impact on custody arrangements. If you file before the New Year, you may need to address custody arrangements during a time when the children are already dealing with the emotional aspects of the holiday season.
- Holiday Custody: Divorcing before the holidays might allow for an easier, more structured holiday schedule, but it could also place additional strain on children who are already adjusting to the emotional impact of their parents’ divorce.
- Waiting Until After the Holidays: Filing after the New Year could give you and your children more time to adjust emotionally before finalizing custody arrangements. This approach allows you to deal with divorce logistics after the emotional intensity of the holiday season has passed.
Dividing Property and Financial Assets: Considerations for Filing Before or After the New Year
Dividing property and financial assets during a divorce can be a complicated and emotional process, especially in Texas, where community property laws require that assets acquired during the marriage be split equitably. The timing of your divorce can affect how property is valued and divided, particularly if there are substantial assets involved.
Asset Valuation and Financial Planning
Filing for divorce before the New Year may affect how certain assets—such as investments, real estate, or retirement accounts—are valued. If you’re planning to divide assets that have fluctuated in value during the year (e.g., stocks, real estate), timing can play an important role.
- Stock and Investment Assets: Filing before the New Year allows both parties to consider how any gains or losses in investment values may impact the division of assets. If you wait until after the New Year, the values of these investments may change based on tax deadlines or year-end bonuses.
- Retirement Accounts and Pensions: If there are retirement accounts involved, filing before the New Year may help clarify which year’s contributions are eligible for division. This can be particularly important for spouses with long-term pensions or 401(k) plans.
Community Property Division
In Texas, any property acquired during the marriage is generally considered community property and subject to an equitable distribution between the spouses. However, the timing of the divorce could impact how property is divided. If you file before the New Year, certain assets may be considered as having been acquired during the previous calendar year, which could affect how the final division is calculated.
- Timing of Property Acquisition: If you wait until after the New Year, you could potentially be dividing different property in the case of assets acquired during the year-end holiday bonuses or tax refunds.
Legal Advice: How Bowen Law Firm, PLLC Can Help You Decide
Deciding whether to file for divorce before or after the New Year can feel overwhelming, but having an experienced attorney on your side can help guide you through the decision-making process. Bowen Law Firm, PLLC is here to help you weigh the pros and cons of filing before or after the holidays, ensuring that you have a clear understanding of how timing could affect your divorce.
Our experienced family law attorneys in Houston can assist you with all aspects of divorce, from custody arrangements to asset division. Contact us today to schedule a consultation and learn more about how Bowen Law Firm can assist you during this difficult time.
In the end, deciding whether to file for divorce before or after the New Year in Texas is a deeply personal decision that involves balancing emotional, legal, and financial factors. Filing before the holidays may offer financial and tax advantages, but it could also increase emotional stress and complicate custody arrangements. On the other hand, filing after the New Year can offer time for reflection and better emotional clarity, but it could delay the legal process.
Whatever you decide, Bowen Law Firm, PLLC is here to help you make the best choice for your unique situation. Contact us today to speak with one of our dedicated attorneys and receive the guidance you need during this challenging time.