Common Questions About Divorce and Taxes

Taxes can be confusing enough by themselves. They can become even more complex when you are going through a divorce. A divorce attorney can help you understand how divorce affects your tax situation and help you avoid tax mistakes in your settlement agreement. This could potentially cost you the future.

Resolving Tax and Divorce Concerns

A skilled divorce attorney can answer your questions regarding how your divorce could affect your tax. The first decision you will have to make is which filing status you want. Your filing status will be determined on the last day of the year. However, to get the best agreement on divorce it is wise to hire divorce mediation service.

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If you're legally separated or divorced and provide a home, more than 50% support for at least one dependent, you can file as the "head of household". Ask your divorce attorney what option is best for you.

If your spouse agrees and you are still legally married, you can file jointly as "married filing together". This has significant tax advantages over filing separately as "married filing separate."

You should discuss with your spouse who can claim the children as dependents before tax time. The IRS doesn't care who files the claim. This is a decision that you, your spouse, and your attorney for divorce can discuss and address in your settlement agreement.

A common question that people ask about taxes and divorce is whether spousal and child support is taxable. Alimony and child support are not generally taxable to the recipients. After a divorce, your spouse will pay taxes on child support. You'll have to pay taxes on alimony and family support.

 

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