Tax Issues in Divorce
Tax issues in divorce are extremely complex. As such, it is very important to hire a dedicated divorce attorney who can assist with your case. When you work with a lawyer at OSH Law, you will have an advocate on your side who has dedicated himself to assisting family law clients throughout Kane County. Otto S. Hurtado provides professional service to every client he represents, and each client deals directly with Mr. Hurtado.
When you file for divorce, you are likely to have many questions about how the proceedings will affect your tax situation. You should always speak with an experienced family lawyer before making any decisions.
What kinds of tax questions tend to arise when spouses decide to file for divorce? For instance, should you file as “married filing jointly” or “married filing separately” when you file your taxes? Generally speaking, until your divorce is finalized, you will still be able to file taxes with your spouse, but it is important to think about whether filing separately may be more beneficial than filing jointly. You should discuss your concerns with a responsible divorce lawyer at OSH Law.
In short, filing for divorce can have an enormous tax impact for many different matters, including but not limited to:
For example, many people who file for divorce have questions about how paying or receiving maintenance can have an effect on their tax situation. Generally speaking, money received for spousal maintenance will be considered taxable income for the payee spouse, and the payor spouse will be able to deduct payments for spousal maintenance.
When it comes to child support, however, the situation is different. Unlike spousal maintenance, child support is not considered to be taxable income, and it is not deductible for the payor spouse. In addition to questions concerning support payments, tax issues also arise when parents want to claim a dependency exemption for their children. This can be a complicated issue, and you should always discuss child custody and taxes with your divorce lawyer.
Depending on the tax implications of certain accounts, particularly in high net worth divorces, property distribution can end up seeming unfair in certain cases. You should think carefully about the taxes associated with various accounts and investments when considering the value of such property. Your attorney can help you to think through numerous tax matters in a high asset divorce.
Divorce can raise many new questions about financial assets and taxes. Whether you have questions about the tax implications of property distribution or your rights when it comes to a dependency exemption, an experienced attorney can assist you today. Contact OSH Law at 331-248-8190 to learn more about how we can help. We serve clients throughout Kane County, DuPage County, Kendall County, and DeKalb County.