THE ABC’s of CPA’s
Q: I’m recently divorced, and I don’t know the first thing about taxes (except that they are not my favorite). Should I hire a CPA?
A: As Albert Einstein said: “The hardest thing in the world to understand is the income tax.” And he was, you know, Einstein.
Income taxes are definitely tricky—and 2020 made things especially fun.
Short answer: Hiring a licensed CPA can help you avoid making mistakes that can have ramifications for years to come. It can also save you a ton of money, stress, and time!
What to look for in a CPA: First and foremost, you need a CPA who is honest, treats you with respect, and is willing to help you understand decisions. It’s imperative that your CPA keeps up with the latest rules and regulations—while this is difficult to find out on your initial call, you can often get a sense of this from how they answer your questions.
Brownie points if they work wonderfully with your financial planner (nearly every investment decision has a tax implication—and having both of these powerhouses in your corner will only mean good things for you).
You should hire a CPA if you have a complicated financial situation, such as owning your own business. You might also consider doing so if you have a QDRO (Qualified Domestic Relations Order), in which an individual can have rights to their former spouse’s retirement plans.
Choose someone new. Avoid conflicts of interest with your spouse by choosing a different CPA. Clean slates (and financial independence) for all!
If you don’t have a CPA in mind already, it’s time to do some homework! Referrals are a great place to start—maybe you have a friend who just went through a divorce and loved their CPA, or ask just us. We’re happy to share some names of trusted folks we love working with.