What Are Some Tax Implications of Divorce?
Understanding How Divorce Affects Taxes
The tax ramifications of divorce are key. When it comes to divorce, think logically, not emotionally. This is a perfect example of that. Things that might become an issue:
- Filing Status
- Exemption for the Dependents
- Home Sale / Capital Gains Tax
- Liability of Past Joint Returns
- Transfer of Retirement Funds
Contact Miller Law Group, P.C. for more guidance on divorce’s impact on your taxes.
The tax ramifications of divorce are key. When it comes to divorce, think logically not emotionally, and this is a perfect example. There are implications of tax issues when it comes to divorce:
- Filing status is an issue
- The exemptions for the dependents is an issue
- Alimony is always an issue because it’s taxable income if you’re the recipient
- When there’s a home sale, you are going to have capital gains tax issues
- There’s the liability of past joint returns
- There’s the issue of the transfer of retirement funds through QDROs
But, you need to look at the tax issues because it may reduce what you think you’re getting and you need to be financially prepared and be educated as to all the issues when it comes to divorce.