After all the wrangling and back-and-forth, you thought that you and your former spouse had…
On behalf of The Law Office of Gustavo E. Frances, P.A.
For many Florida parents, understanding the financial ramifications of their divorce is a top priority. This includes working through the various tax changes that can accompany the end of the marriage. It is always a good idea to address any and all financial matters in the early stages of divorce when adjustments can be made to minimize the impact of negative changes. When it comes to child support, the impact on taxes is simple.
Child support was created to ensure the children whose parents divorce would be properly supported and that their needs would be met. Therefore, child support is viewed as a simple obligation of the noncustodial parent to provide for the needs of his or her child. To that end, child support payments are not eligible for a tax deduction. The parent who receives child support will not be taxed on those payments.
Alimony is an animal of a different sort. The party that is obligated to make spousal support payments will have the right to deduct those payments from his or her taxes. That can be a valuable benefit, especially for individuals whose tax obligations sit at or near important thresholds. As for the party who receives alimony, those payments will be treated just like any other form of income, and they are subject to taxation.
The best way to deal with these and any other changes that will be the result of a Florida divorce is to address the matter early, including budgeting for child support. Doing so allows both spouses the opportunity to make adjustments needed to minimize any negative impact that might result. The timeframe following a divorce is best spent creating separate lives that are in line with each party’s individual goals and not struggling to deal with unexpected tax outcomes.
cheatsheet.com, “Getting Divorced? How Divorce Affects Your Taxes“, Sheiresa Ngo, Sept. 12, 2016