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What are the Tax Implications of Divorce?

Experienced Franklin divorce attorney outlineswhat’s at stake?

By the time you start the divorce process, you may have thought about a lot of things in detail, such as who will keep the house or how you will split the profits if you decide to sell it, how you will go about changing back to your maiden name, or even how you will manage social interactions with your joint friends. But you might not have even thought of some of the things that can have a big impact on your bottom line year after year, like your taxes.

You don’t have to pay any tax when you get a divorce, but there are ways that your tax obligations or credits can change significantly. Your divorce can impact your tax obligations, from the residential arrangements for your children to the way you divide your assets. I advise my clients to consult a tax expert on these issues.

Here are a few of the ways that divorce impacts taxes:

It is best to speak with your divorce attorney and a tax expert to understand the rules and how they apply to your circumstances specifically.

There are other ways that your divorce can run up against the IRS. For example, if you are ordered to pay alimony or child support and you fail to do so, the IRS can direct your tax refund to the ex-spouse who is owed an arrearage. There are also many complex tax rules related to the sale and transfer of property, which could include your house, rental properties, or business. It’s important that you consult with your divorce attorney and an experienced tax expert to understand what the implications are for your case specifically.

If you aren’t a tax professional, you shouldn’t try to handle the complex tax issues that are tied up in divorce on your own. You should consult with the professionals who will help you protect your interests. I’m Judy A. Oxford, an experienced Franklin divorce attorney, and I advise my clients and help them to protect their rights during their divorce and fight to get them the best resolution possible. Call my office today at (615) 791-8511 to start talking about your divorce, or use the secure online form on my website to schedule a free consultation.