Going through a divorce is one of life’s most unpleasant experiences, even in the friendliest of cases. Dividing one house into two takes emotional and financial strength. Because it is important to land on your own financial feet after your divorce case ends, knowing how your finances are impacted is one of the most critical aspects of most cases. Issues from alimony, child support, and taxes are just a few of the significant issues to consider when finalizing financial settlement in your divorce.
Knowledgeable family law attorneys will help you reach resolution on support issues within your case, and that could include how your income taxes might change. The IRS website contains helpful information in this regard, and provides some useful tips:
● When reporting income you are required to report income from all sources, whether alimony counts as income is something your family law attorney will help you learn.
● Child support is not considered income.
● Your filing status plays a role in whether support payments are defined as income.
When divorce is initiated prior to an income tax return being filed, a determination as to whether the couple should still file together or separately must be made. The potential tax liability is an important factor in making this decision. Your family law attorney can give you the information needed to make an informed choice about your filing status.
If you have questions about divorce and taxes, consult a qualified legal professional. Let us put our experience to work for you. Call the Sampair Group in Phoenix and the West Valley today to schedule your appointment.