When facing divorce, most people focus on such issues as property division, child custody, parenting time, child support or alimony. An experienced attorney will help you understand and anticipate the potential tax implications of your divorce or legal separation and ensure that you obtain appropriate tax advice from your certified public accountant (CPA) or tax advisor.
Understanding the Tax Implications for Spousal Maintenance and Child Support
There are many tax implications for divorce. For example, you may lose certain tax breaks for married couples upon divorce or legal separation. On the other hand, you may gain certain tax exemptions for spousal maintenance (alimony) payments if certain requirements are met. If you receive spousal maintenance as a part of your settlement, the IRS may require you to declare payments as a part of your taxable income. Failure to declare maintenance payments on your tax return, whether you pay or receive them, could lead to tax penalties or a personal audit by the Internal Revenue Service (IRS).
While our attorneys do not provide counsel in tax law, we can guide you regarding potential tax pitfalls resulting from divorce and refer you to an appropriate tax expert who can assist you with these issues given your particular circumstances.