Your divorce attorney and tax professional should be able to work together to answer your questions and provide the best advice to limit your tax burden and maximize tax savings.
Divorce, child support and taxes can be confusing and a point of contention among parties to divorce. It does not make it any easier when your divorce and tax professionals point towards one another and try not to step on toes. Your divorce attorney and tax professional should be able to work together to answer your questions and provide the best advice to limit your tax burden and maximize tax savings.
Key tax issues of which to be aware
Every divorce and its relative financial details are unique. That said, there are general elements of taxation and divorce to consider with your divorce attorney and tax professional.
What filing status will you use?
The final day of the tax year is the determining date as to how you should file your tax return. If you are divorced as of midnight on December 31, you may file separately even though you were married during part of the year. If you are the custodial parent you may qualify for head of household status.
Tax implications of child support
Child support is not deductible to the person who pays, but spousal maintenance is deductible. Likewise, the child support recipient does not pay tax like they would pay tax on alimony.
Who will claim the children as exemptions?
Some divorcing couples elect to take the exemption for children every other year. A pitfall of which to be aware is the situation where parents claim exemptions for children on years they are not allowed to do so in their parenting plan and divorce judgment.
Do you have legal fees for tax advice and analysis?
While the fees you pay your divorce, lawyer are not generally deductible on your taxes, the professional fees you pay to your lawyer and tax professional on the issue of taxation alone, are properly deductible on your income taxes.
Changing your withholding on Form W-4 if you work
One of the easiest things to do is overlook your withholding instructions with your employer. Failing to update your W-4 withholding can lead to surprises at tax time that might not be in your favor.
About Scroggins Law Group: Dallas, Collin and Denton County Board Certified divorce and family law attorney Mark Scroggins, and the team at Scroggins Law Group represent clients in a variety of divorce and family law matters.
At Scroggins Law Group, we have more than 20 years of experience with family law cases in Dallas, Denton and Collin Counties. When you retain our firm, you can trust that your case is in the hands of a highly skilled, dedicated professional. We understand the unique challenges of a high value divorce case, and more importantly, have the knowledge and experience you need on your side. Call us today, (214) 469-3100, to learn more about Texas divorce and family law.
