Divorce/Legal Separation Tax Issues
From the emotional toll it takes on you and your family to the potential long-term effects it may have on your taxes, it is reasonable to believe that divorce can be a confusing and trying process. When it’s time to leave or separate, call Brotman Law; we resolve even the most challenging divorce tax issues cleanly and efficiently.
INNOCENT SPOUSE TAX RELIEF
We specialize in innocent spouse relief, simplifying the complex tax codes for you and aiding in the preparation and completion of necessary IRS paperwork.
TAX DEFERRALS
The distribution of property during divorce may give rise to tax considerations. Some assets include deferred taxes. The experienced attorneys at Brotman Law identify and evaluate these tax matters in the context of property distribution.
DIVORCE TAX ADVICE
Don’t be a victim of the IRS when going through a difficult life event like divorce. Debt and divorce are onerous. Our advice will go a long way to getting you the results you deserve.
Overview
Couples going through a divorce usually have a lot on their minds. As such, vital aspects of their financial planning might be overlooked. In the case of tax liability, a green mistake can result in additional financial snags on top of the divorce.
In order to avoid blunders that could further complicate your life and divorce, you should seek the assistance of a tax attorney. Tax issues in divorce proceedings can arise out of nowhere, and only a professional can help you identify them along the way. Further, typical divorce attorneys will sometime try to distance themselves from the tax concerns of a divorce as they want to escape the responsibility.
If your divorce lawyer is not taking into account the tax implications of your divorce settlements, you can miss out on a sizeable amount of what you are rightfully owed. Or, in the worst-case scenario, be extorted for a larger settlement because of past tax noncompliance.
The only way to ensure that you stay compliant and attain equitable divorce terms is by enlisting the help of a divorce tax attorney who appreciates the tax implications of divorce. If you are considering divorce or are recently divorced, the attorneys at Brotman Law can help you file relevant taxes, negotiate settlements, and ensure compliance with the tax code.
Innocent Spouse Relief in CA
What Else Should I Know?
There are several tax implications to consider during a divorce. Here are a few key points to keep in mind:
- Filing status: During a divorce, you must choose a filing status (single, married filing jointly, or married filing separately). You will generally want to choose the filing status that results in the lowest tax liability.
- Alimony: Alimony, or spousal support, is tax deductible for the person paying it and taxable income for the person receiving it. This can have significant tax implications for both parties.
- Property division: The tax implications of dividing property will depend on the type of property being divided. For example, if you receive a cash settlement, it will generally be taxed as ordinary income. If you receive property, you may have to pay taxes on any appreciation in value since the property was acquired.
- Dependent exemptions: If you have children, you will need to determine who will claim them as dependents on their tax returns. This can have a significant impact on your tax liability.
It’s important to consider these and other tax implications carefully as you navigate the divorce process. Brotman Law, with a wealth of experience in divorce cases, has established a strong support network to help clients navigate the often difficult circumstances of divorce or separation.
We specialize in innocent spouse relief, simplifying the complex tax codes for you and aiding in the preparation and completion of necessary IRS paperwork.
If distribution of property during divorce gives rise to tax considerations, our experienced attorneys identify and evaluate these tax matters in the context of property distribution.
Don’t be a victim of the IRS when going through a difficult life event like divorce. Debt and divorce are onerous. Our advice will go a long way to getting you the results you deserve.
There’s so much that happens in the divorce process: Family Court is exhaustive and expensive, the parties may not like each other, their attorney, or the other parties’ attorney. There’s a lot of frustration and personal feelings involved.
Divorce can be painful, frustrating, confusing and expensive. Adding tax issues might seem like it would even make it even more so. However, with our specialized divorce and tax practice, we resolve even the toughest issues cleanly and efficiently.
At Brotman Law, we enter the picture to create a very specific solution to a very specific problem in the middle of a complex issue. Rather than taking sides in the dissolution of the marriage itself, we are focused on getting our clients the best result possible with their tax issue. The last thing that anybody wants, in addition to fighting with their spouse, has to fight the IRS.
FORWARD-THINKING ATTORNEYS
Our counsel to clients goes beyond resolving the current situation and entails assessment of the future impact of the decisions made now. We will evaluate how to position you for success long after divorce with regard to matters tax and protecting your standard of living.
PERSONAL CLIENT SERVICE
We are not therapists but are sensitive to our client’s emotional state. Our attorneys understand the value of treating clients with compassion and respect. Particularly in a divorce, we acknowledge the uncertainty and confusion that arises, which is why communication is vital in providing you with effective representation.
CONFIDENTIAL
At times, couples aren’t entirely certain that they want a divorce but rather know what to expect if they proceed. You shouldn’t worry about your partner finding out when you come to us. The attorney-client privilege protects all our conversations.
Our Clients Will Tell You: We Get Results.
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The Ultimate Guide to Innocent Spouse Relief, Divorce, and Taxes
Navigating both divorce and the tax consequences it presents adds to the stress of a difficult situation. From how to file your taxes to spousal relief eligibility to alimony taxes, this guide will help you move through this stressful time.
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STILL HAVE QUESTIONS?
The high net-worth spouse has not only considerable amounts of assets and property that must be considered but also may face extra hurdles through prenuptial agreements, divorce taxes, and other issues concerning divorce settlement. Although the presence of a prenuptial agreement is something an accountant or lawyer should always verify, tax considerations are likely to exist whether or not a prenuptial agreement guides the division of property.
Under federal law, child support is not taxable. These payments do not affect your taxes or your ex-partner’s taxes.
No, unfortunately. The IRS views the funds spent on divorce proceedings as “personal spending,” as it is not usually directly related to a business, retirement plans, or inheritance.
The date of the divorce will certainly affect the marital status applied when you and your partner file taxes. For example, if your divorce comes before Dec 31st, you and your partner will no longer be entitled to use the joint filing status for that tax year. In other words, you’ll have to file individually.