Commack Tax Issues & Divorce Lawyer
When a couple seeks a divorce, they tend to focus most of their energies on resolving questions like who will have custody of the kids or who will keep certain marital property. Often overlooked are the potential tax consequences of the divorce. Even in cases where the parties reach a settlement agreement on their other outstanding issues, they often fail to consider the tax implications beforehand.
Here at the Law Office of Joshua Adam Kittenplan, P.C., our experienced Commack tax issues & divorce lawyer can help. We have the expertise to walk you through the tax issues arising from your divorce–and we can help make sure you are not surprised by an unexpected tax bill after your marriage finally ends.
What Are the Possible Tax Implications of My Divorce?
Every divorcing couple is in a unique financial situation. But here are just a few of the more common tax-related issues we see in Commack divorce cases:
- Filing tax returns. If you and your spouse have traditionally filed joint tax returns each year, you need to decide whether you will continue to do so during the divorce process. You also need to figure out how to handle any tax liability or refunds on previously filed joint returns.
- Selling the marital home. When you sell your house, federal law affords married owners a certain exemption on the capital gains from that sale. If one spouse continues to own and live in the house post-divorce, that exemption is cut in half. So in some cases, it may be financially beneficial to sell the property during the divorce.
- Spousal maintenance. Prior to 2019, alimony payments were tax-deductible for the payer. But for any divorce finalized after January 1, 2019, that deduction is no longer available. The recipient must also report any alimony received as taxable income. Child support is not taxable.
- Child-related tax credits and exemptions. There are a number of tax benefits tied to children, such as the federal Child Tax Credit and deductions for certain daycare expenses. Typically, only a custodial parent can claim these benefits. In cases where parents share custody, the parties or the court must decide who will actually claim these credits and exemptions.
- Property settlements. When marital property is transferred to individual spouses as part of a divorce settlement or judgment, that is not itself a taxable event. This means any assets transferred retain the same “cost basis” for tax purposes. This can have a significant impact on the overall fairness and equity of a marital property division.
Contact Attorney Joshua Adam Kittenplan Today
Perhaps the last thing anyone wants to think about when going through a divorce is the effect it will have on their taxes. But there are critical issues to consider with respect to the financial security of you and your family moving forward. So if you need to speak with a skilled Commack tax issues and divorce attorney, contact the Law Office of Joshua Adam Kittenplan, P.C., today to schedule a free initial consultation.
