Nearly every involves a complex network of financial settlements and transactions.

Indeed, many Georgia couples get so lost in the discussions over who will take ownership of assets and debts that they forget to discuss one of the most important financial issues out there - how will they file taxes for the last year of their marriage?

Often, couples pursuing a Georgia divorce assume that they should file a joint return, since that had been their common practice during the marriage. However, this may not always be the best strategy. If one spouse is not honest on the joint return, the other could end up in serious trouble with the IRS.

Joint Returns Mean Joint Responsibility

Take, for example, this case recently decided by the U.S. Tax Court - in 2006, a husband and wife divorced. She was a dentist, and he owned a gas station. Around the time of the divorce, he sold his gas station and, after paying off some debts, deposited about $315,000 in profit into the couple's joint savings account. He did not set any money aside to pay taxes.

After the couple split, the husband was responsible for filing their joint tax return. When he finally completed the return - nearly a year late - it showed that he owed more than $63,000 in taxes on the gains from the sale of his gas station.

The husband did not have the money to pay the tax. He had transferred nearly all of the profits to relatives in what the wife suspected was an attempt to hide assets.

However, joint returns come with "joint and several liability" for the couple's tax debts. This means that if the husband can't or won't pay, the IRS can come after the wife.

Separate Returns Provide Better Protections

Ultimately, the wife was able to escape liability, but it took four years of litigation.

The better route would have been for the wife to file a separate tax return from her ex-husband. That way, each spouse would have only been responsible for their own financial dealings.

If you are in the process of divorce, don't forget to make a discussion about tax responsibilities part of your financial settlement plan.

Source: Forbes, "Joint Return for Divorcing Spouses - Think Thrice - Then Think Again," Peter J. Reilly, Jan. 22, 2012.