When couples go through a divorce, financial matters often create stress and confusion—especially when taxes come into play. Decisions made during a separation can carry long-term financial consequences, including those that affect how much you pay, save, or owe in the future. Our professionals guide clients through divorce with a focus on every financial angle, including tax-related issues. If you’re dealing with asset division, spousal support, or custody agreements, it’s wise to speak with a tax lawyer as part of your overall plan. Divorce Lawyers and Attorneys is here to help you move forward with clarity—reach out to schedule your consultation today.
What Divorce Means for Your Taxes
Divorce can change your filing status, your eligibility for deductions, and how you claim dependents. These shifts in tax status can affect your return in ways that many don’t anticipate. For example, if your divorce is finalized before the end of the year, you’ll file as a single person—even if you were married for most of that year. This might result in a different tax bracket or change the amount you owe.
Child custody agreements can also impact taxes. Only one parent may claim the child as a dependent, so it’s important to document this clearly in the final agreement. If not handled properly, both parties may end up claiming the same dependent—leading to IRS flags or penalties. Dividing property can be another point of concern. Assets like retirement accounts, real estate, and investment funds may come with tax responsibilities when transferred or sold. In many cases, we’ll work with a tax lawyer to assess how these transfers could affect you now and in the future. It’s a smart step that can save time and money down the road.
Why Spousal Support Can Affect Filings
Support payments—especially alimony—can affect your taxes, but the rules have changed in recent years. For divorces finalized before 2019, alimony payments are generally deductible by the payer and taxed as income for the recipient. For divorces finalized after 2019, this no longer applies. That means neither party can claim the deduction or count it as income. These shifting guidelines make it even more important to stay informed and get reliable legal and financial advice.
When support is combined with asset sales or large property transfers, the tax impact can be even greater. In high-asset or complicated divorces, we often suggest working closely with a tax attorney to evaluate each decision. That way, you don’t find yourself facing an unexpected tax bill during an already difficult time.
How We Work Toward Better Outcomes
We know that no two divorces are the same. Your finances, family structure, and long-term goals are unique. That’s why we offer personalized guidance for every case, and when needed, collaborate with financial professionals, including a trusted tax attorney. This helps us build agreements that are not only fair but also forward-thinking.
Taxes are more than just forms to file—they’re tied to nearly every part of your divorce, from who claims the kids to how your assets are divided. By thinking ahead, we help you avoid financial pitfalls and walk away with peace of mind. Divorce Lawyers and Attorneys is ready to support you through each step of the process. Let’s discuss how a tax lawyer may help protect your financial future during and after your divorce. Contact our professionals today to get started with a team that puts your needs first.