What are the tax consequences of separation in North Carolina?

When you separate from your spouse in North Carolina, there are essentially no tax consequences associated with this action. If you choose to  file for separation NC, this action is done simply because you want some type of legal agreement in place to govern what will happen during the time period before you get a divorce. A separation agreement may be drafted- either outside of the court room if you can your spouse can work together, or by a judge if you can't- that helps you to deal with things like who is going to have to pay the mortgage while you are living apart or who will get the kids and when. This separation agreement, your status as separated, or your moving out of the house does not change or affect your taxes in any way, since the separation does not affect our status as a married person.

Of course, if you decide to carry through the separation with a divorce, then there may be some tax consequences. Most of these consequences, however, will be felt more heavily on your federal taxes. For example, once you are no longer married, you obviously will not be able to file married tax returns any more. This means that you will then be a single filer, instead of filing married or head of household. This can affect certain deductions. Further, if you are ordered to pay alimony or spousal support, this may be considered tax deductible to you on your tax return.

The concepts of legal separation and divorce can be confusing- you will want a lawyer to act as your guide and help you understand your rights and the affects of taking these actions.