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Term Definition FIT - Federal Income Tax.
Application in Divorce Individuals and corporations must pay taxes on income.

One the difficult decisions a couple must make when divorcing is the distribution of and any refund they may be owed. Couples frequently use payments and refunds as bargaining points in a marital settlement agreement.

As a rule, a middle-income couple who are divorcing file jointly the last year they are married, and they may do so, if they are permanently separated and planing to divorce, provided they are still married on Dec. 31.