The Stogsdill Law Firm, P.C.
630-462-9500
After Hour New Client Telephone Number 630-690-6077 Our Location

Divorce and Taxes

One of the most complicated parts of a divorce can be trying to understand all of the different tax consequences a given course of action could cause. You need a knowledgeable lawyer on your side to help you make informed decisions that could impact your finances and your tax bill for years to come. 

Do You File Jointly or Separately?

If you are in the middle of a divorce, then you and your spouse need to decide the best way to file taxes. If you were still legally married through December 31 of the most recent tax year, filing a joint tax return may be most beneficial. However, you should discuss the issue with your lawyer or tax professional.

What About a Refund?

Tax refunds are technically marital property in most situations. This means that the two of you will need to come to an agreement on how to split the refund or deposit the refund in a trust account until the court has decided how the refund should be divided.

Unallocated Payments

Child support and spousal maintenance payments may have tax consequences for both spouses. In some cases it may provide a useful tax benefit for child support and spousal maintenance to be combined into a single unallocated support payment. This can benefit both the spouse paying support and the spouse receiving support. However, like everything related to taxes and divorce, this is a fact specific issue that should be discussed with your lawyer.

Transferring Assets and Taxes

In the case of most marital assets, the IRS does not consider the transfer of one asset from one spouse to another in a divorce to be a taxable event. However, especially in high net-worth divorces, some asset transfers can trigger taxable income or even tax penalties. You and your divorce lawyer will need to carefully consider the tax consequences of any potential property settlement before reaching an agreement.

Who Claims the Children?

Usually the parent with whom the children live with most of the time gets to claim the children as dependents on his or her taxes. However, there are mechanisms to rotate which parent gets the tax deduction. One parent could also voluntarily give up his or her right to claim the children as dependents on his or her taxes.

If you have questions regarding taxes and divorce, then you need to speak with a skilled DuPage County divorce lawyer. Make sure you understand the tax consequences of your divorce. Please call The Stogsdill Law Firm, P.C. today at 630-462-9500 to schedule a consultation.

Source:

https://www.irs.gov/publications/p504/

No Comments

Leave a comment
Comment Information
Read More Testimonials
Contact Us Today

Contact Us To Schedule A Consultation With An Attorney At Our Firm Call 630-462-9500 or provide your contact information below and we will get in touch with you:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Stogsdill Law Firm, P.C.
1776 S. Naperville Road - Building B, Suite 202
Wheaton, IL 60189

Phone: 630-690-6077
Phone: 630-462-9500
Wheaton Law Office Map

Review Us