Posted on: 19 August 2019
If you have children and plan to go through a divorce soon, it is very important to find out the effects that a divorce will have on you, your finances, your kids, and your life. As you research these things, one important area to focus on is the tax implications divorce will have on you. Tax issues are a crucial factor to analyze and negotiate on, as there can be some major tax implications after a divorce, especially when you have kids. Here are several tax issues to talk about with your divorce lawyer.
Claiming the kids on taxes
One huge tax benefit of having kids is the ability to claim them on your taxes as exemptions. By doing this, it lowers your tax liability, and it often results in receiving a tax refund instead of owing money for taxes. Because this is such a huge benefit, couples must come up with a plan of who will get to claim the kids on their taxes. You can agree to let one spouse claim them every year, or you could agree to alternate. It is entirely up to you, but you should talk to your lawyer about this before making any decisions.
Effects of child support and spousal support paid or received
You should also talk to your lawyer about the effects that child support or spousal support can have on your taxes if you receive or pay either of these. With child support, you cannot write off the amount you pay, and you do not have to claim the amount you receive, so it basically has no impact on your taxes. Spousal support is different in most cases, though. You will typically have the ability to write off any amount you pay for this type of support, but if you receive spousal support, you might be required to claim it on your taxes as income.
Filing your upcoming taxes
The other tax-related issue to learn more about is the upcoming taxes you will be filing. If you are still married when the year ends, you will be required to file a joint return with your spouse. If you are planning on receiving a refund from this, you should negotiate a plan ahead of time as to how you will split it.
These are three issues to talk to your divorce lawyer about so you can know how these things will affect you. If you have further questions about tax issues or anything else related to your divorce, contact a family attorney today.Share