Tuesday, February 7, 2012

Divorce and Taxes: Potential Issues to Consider

When getting divorced, there are tax implications that should be addressed, whether in settlement negotiations or at final hearing.  For instance, it should be determined which party is entitled to claim the dependency exemption for the child/children of the marriage.  In a one child marriage, it is common for the exemption to be alternated.   When there are two or more children, the exemptions are often divided between the parties.

Other tax issues concern the parties filing status if the divorce is not completed by December 31st of the tax year in question, which party is entitled to claim the mortgage interest exemption, and the treatment of post-dissolution payments from one spouse to the other.

There are a number of sources online that discuss divorce and taxes.  A good place to start would be the linked April 2011Time magazine article. 

If you are considering a divorce or currently face a divorce, it is a good idea to discuss your situation with a Hollingsworth & Zivitz, PC family law attorney. Hollingsworth & Zivitz, PC serves clients in the greater Indianapolis area including Carmel, Fishers, Westfield, Noblesville, and Hamilton County, as well as Zionsville, Avon, Brownsburg, and the counties surrounding Marion County.
To discuss your divorce or family law issue with a Hollingsworth & Zivitz, PC attorney, call 317.DIVORCE.

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