The arrival of tax season is a reminder of the importance of tax-related issues in planning and structuring a divorce. To maximize assets, realize potential tax savings, and possibly avoid later disputes, divorcing or separating couples should examine an array of factors that could impact the parties. Considerations include the deductibility of alimony payments, the claiming of dependency deductions, and the tax consequences involved in the distribution of assets and the sale of the marital home.
IRS Publication 504 is one of the best references for divorced or separated individuals, and provides critical tax information in areas such as filing status, exemptions, alimony, qualified domestic relations orders (QDROs), individual retirement arrangements, property settlements, community property, and legal fees and court costs.
The forms and articles linked below have been selected to provide an overview of possible tax implications that arise during the divorce process. It is a good idea to discuss these complex issues with an experienced tax or divorce attorney who can assist you in optimally planning the tax aspects of your divorce.
- IRS Publication 503: Child and Dependent Care Expenses
- IRS Publication 504: Divorced or Separated Individuals
- IRS Publication 971: Innocent Spouse Relief
- IRS Publication 8332: Release of Claim to Exemption for Child of Divorced or Separated Parents
- Divorce Tax Issues
- Tax Implications of Divorce and Support
- Federal Income Tax FAQ's
- Tax Considerations
- Is Alimony Always Tax Deductible to the Person Who Pays It?
- The Seven Alimony Rules
- Tax Exemptions for Children
- Tax on Sale of the Marital Home