Understanding The Tax Considerations Of Divorce
Many people don’t realize that divorce has significant tax implications. This is especially true for high net worth couples. Many of these tax considerations are easy to overlook. Sometimes, even the wording of an order or settlement agreement can drastically impact your tax burdens.
If you’re struggling with tax considerations when getting divorced, it’s important to seek professional guidance. With proper planning, you can take advantage of opportunities to reduce your tax obligations — both during divorce and long after.
Making Sure That Important Issues Don’t Get Overlooked
At Terri Herron Law, in the Atlanta metro, we can help you identify tax issues so they don’t come back to haunt you. Our attorney can connect you with trusted accountants and tax advisers in Georgia to make sure you get the right advice regarding issues such as:
- Which tax status to file during divorce (married filing jointly, married filing separately, single or head of household, for example)
- Who can claim dependent exemptions for your children?
- How will alimony and child support be treated for tax purposes?
- Will you accrue capital gains tax if you’re awarded a share of property that has appreciated?
- Are you eligible for any divorce-related deductions, such as attorney and accountant fees?
- Will division of your retirement assets result in tax penalties?
- How can you avoid tax liability for inaccurate joint returns filed by your ex-spouse?
Tax issues come into play even before your case goes before a judge. During settlement discussions, for example, tax considerations can be bargaining chips for negotiating a favorable outcome. If you do reach a settlement agreement, these issues must be fully addressed to avoid confusion, disputes or unanticipated consequences down the road.
Special Considerations To Think About
Due to changes in the tax code regarding alimony requests and other complex property issues, you may have further questions about your unique tax situation. To make sure you get the information you need, we encourage you to first check out our Divorce FAQ page for answers to common divorce questions, including those concerning tax status after divorce.
Talk To Us. Get Answers.
Take the next step by speaking with lawyer Terri Herron and ensure the protection of your best interests. Call 404-692-6487 or reach out to us online to get started. Based in Roswell, we have four other convenient offices in Atlanta, Marietta, Duluth and Snellville, where we can meet to discuss the specifics of your case during a free initial consultation. Evening and weekend appointments are available upon request.