Is there a tax advantage to waiting until after year-end to finalize my divorce?

If you have a significantly higher income than your spouse, it may be advantageous to delay the divorce until after year end so that you can file a joint tax return.  The tax brackets for the married filing jointly status are higher and can result in lower taxes.  Other advantages of filing jointly exist such as being able to take advantage of certain child credits and earned income credit.

However, if both spouses have equal or similar income, finalizing the divorce before year-end may be more advantageous from a tax planning perspective due to the marriage tax penalty provisions and the separate liability issue. 

To see the impact of both scenarios use tax software to calculate your taxes both ways.