Married couple with joint investment accounts, officially separted in 2018. How should I proceed?

This couple has actually been physically living apart for a number of years. I filed their 2016 and 2017 tax returns (Turbo Tax) as a married couple,but living apart.

There was and still are joint investment and banking accounts. In both of the prior years, I also split pension income.

They are now "offically" separated and have intiated divorce proceedings. The clients understand that income from the joint accounts will need to be reported as in previous years but no longer want any pension splitting to take place.

Is there anything I should do prior to rolling the file forward into Profile? When should the files be "uncoupled"?


Nothing specific to do here. I would roll the files into profile for 2017 and just uncouple them after carrying their 2017 returns forward to 2018. Then just add the separation date on each return. If they have already been living apart for several years, you will basically just have to make up an "official" separation date. 

Joint investments should continue to be taxed as normal (based on the % invested by each spouse, 50/50, 60/40 etc.). 

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