A divorce can impact almost every part of a person’s life. Any Houston resident who has directly experienced a divorce knows this all too well. Some of the changes may be positive while others are frequently not so positive. Each divorce process is unique and has its own associated set of pros and cons to involved parties.
The financial implications of a divorce are commonly some difficult ones for both husbands and wives. When it comes to filing taxes after a divorce, the results of a divorce can be felt for many years. A current news article reported on some of the primary things that divorcing couples should be aware of in term of how their divorces will affect their tax filings. One issue is a person’s filing status. Each spouse will be required to file separate tax returns in the year that a divorce is finalized, no matter how late in the year.
Another concern is regarding alimony and child support payments. For the spouse that pays these, he or she may include spousal support payments as a tax deduction while the receiving party must pay taxes on that amount. Child support does not affect taxes for either spouse. People who have divorced after 2009 must file a special form with the IRS to indicate which parent can claim the children as dependents as the divorce decree is not sufficient for this purpose any longer.
Many emotions can be at play when financial and divorce matters collide. Working with a trusted attorney might be one way that a divorced person can help to understand issues and make the best decisions about important matters.
Source: Huffington Post, “4 Things To Know About Filing Your Taxes After Divorce,” Lauren Young, April 10, 2014