Divorce & Tax Implications
Complex Divorce Tax Assistance
Few challenges in life can be more difficult than a divorce. Divorcing couples make significant changes to their lives and must wade through a morass of legal, financial, social, and emotional issues. It is difficult to navigate such a process, particularly when making decisions regarding living arrangements, spousal support, child custody, and division of assets.
When making these decisions, divorcing spouses must consider the effects of their choices on their tax liability. Without considering the tax ramifications during a divorce, you may end up paying more than needed or running into trouble by not meeting your legal tax burden.
When considering these tax questions in the context of a divorce, it is critical to have a trained Connecticut divorce attorney who can guide you through the process and ensure you are made aware of the complex issues involved in a divorce, including tax liability.
At the Law Offices of Elizabeth A. Edwards, LLC, we have experience handling all matters associated with tax ramifications during divorce. Through the processes of mediation and collaboration, our team helps you find solutions during the dissolution of your marriage that avoid the expense and headache of litigation.
Decisions During a Divorce Affect Your Tax Burden
When making decisions regarding the division of your marital assets or the custody of your children, you should know that many of your choices will have short term and long term tax implications. During a divorce, you may wonder:
- What are the tax implications of selling your home?
- Are divorce-related expenses tax deductible?
- Is child support tax deductible?
- Which parent will be able to claim your children as dependents?
- Does spousal support and alimony count as income?
- Which is better for tax purposes: receiving alimony as a lump sum or receiving periodic payments?
- What can you do if you discover that your former spouse under-reported taxes on past joint tax returns?
At the Law Offices of Elizabeth A. Edwards, LLC we can help you find answers to these and other questions. When working with our clients, we negotiate divorce settlements with these tax considerations in mind so that all parties achieve an outcome that is best for everyone involved.
Tax Considerations After a Divorce
It is important to note that months or even years after your divorce events can continue to affect your tax obligations. For example, a transfer of custody, a change in child support, an end of alimony payments, or other changed circumstances, can affect your tax burden. A legal professional can make sure that these issues are on your radar when the time comes.
Mediation and Collaborative Attorney
At the Law Offices of Elizabeth A. Edwards, LLC, we help divorcing couples find common ground and reach outcomes that benefits everyone involved in the dispute. Unlike litigation, mediation and collaboration offer ex-partners the chance to reach agreements in a more efficient way that saves on costs and avoids prolonged conflict.
Our goal is to help you move past disputes and on with your life.