On behalf of The Law Office of Gustavo E. Frances, P.A.
There are some tax issues you should definitely discuss if you want a fair divorce settlement. Alimony, for example, is taxable to the recipient. It is important that you speak with a knowledgeable Fort Lauderdale property division attorney with experience in all the aspects of the divorce process, including the potential effects of taxes. But let’s discuss some the most common tax concerns our clients have.
Changing your name after divorce
It is common for divorcees to change their names after claiming their independence. While privately owned freedom is a good thing, there are some steps you must take. First, you will have to notify the Social Security Administration about any name changes before filing your taxes. This step is essential otherwise the name in your tax returns will not match the name in the Social Security records.
When filing your taxes
Some couples prefer filing jointly after divorce since they can retain some tax deductions and credits that may not be available otherwise. However, you may also be held responsible for your former spouse’s tax liability. This is something you may want to discuss with a professional or Fort Lauderdale property division attorney.
Child support is not tax deductible, whether you are the recipient or provider. But there are other factors that may be considered and become taxable such as any added financial responsibility not covered by child support. It all depends on how your custody arrangement was crafted and which spouse claims the children as dependents when filing taxes.
Only the person providing the financial support can deduct alimony. The recipient will report spousal support as income. This rule only applies if these payments were part of a court agreement otherwise this tax policy will not apply.
It is common for couples to acquire marital property during the course of their marriage. Whether that includes your family home or any other assets, there are some important tax implications you must consider. If you decide to keep substantial assets during divorce, you will be subject to estate tax.
Everybody is required to have health insurance for themselves, children or dependents. If you are not longer covered by a jointly policy, you may have to purchase a new health care insurance, which can be very costly, but you will avoid tax penalties.
Get assistance with any family law matter today
You have rights and responsibilities you should be familiar with during divorce. It is extremely important you consult a qualified family law attorney that understands the impact a divorce will have on your finances and lifestyle. To find out more information about divorce in Florida and how we can make the whole process faster and cost effective, call us today and schedule a private consultation.
Even when you and your former spouse arrive at a mutual arrangement, the divorce process can be difficult and heartbreaking for many divorcing couples. We can handle all the legal aspects so you can focus on your family.