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.
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.
If you are a self-employed parent, you may still be required to make child support payments based on your determined income. We can help you understand the complex tax implications involved in this unique situation in conjunction with your professional accountant or tax advisor.
Transfers of assets as part of a divorce settlement or order should be a non-taxable event to the parties if handled correctly and with proper divorce planning. If necessary, we will work with your tax advisor or CPA to determine the effect, if any, your property settlement or order will have on your overall tax plan.
At Lasiter & Jackson, we provide knowledgeable and understanding advice for the delicate issues associated with divorce and family law. We are committed to obtaining positive results for each of our clients, and we strive to provide qualified case assessment at a reasonable cost.
Contact our law office in Phoenix, Arizona, to discuss your unique divorce and family law issues. The tax implications of property settlements, spousal maintenance and child support are best understood when working with an experienced divorce attorney and tax expert.