Tax Issues Related To Divorce
The decisions made during a divorce can have a lasting impact on many areas of your life, including your taxes. Every divorce – from those that are drawn out and contentious to those that are uncontested and over quickly – will have tax issues, so it is important that you have the guidance you need to make informed decisions.
At Golda R. Jacob & Associates P.C., an established Houston, Texas, family law firm, we advise our clients on all aspects of divorce, including the tax consequences. We also work with esteemed professionals in the tax community to pull together resources that allow our clients to make smart decisions and plan for the future.
The Tax Consequences Of Divorce
With so many elements of your life being changed by a divorce, it is easy for tax issues to go unnoticed. However, these issues can have an impact on your financial stability in the future and need to be considered. Tax considerations involving divorce include:
- The need to file separately from your spouse going forward
- Analyzing which parent will benefit more from a child dependency exemption and child tax credit
- The allocation of support between child support, which is nontaxable to the recipient and nondeductible to the payor, and spousal support, which is taxable and deductible
- The division of assets that might generate a capital gain tax
- The liquidation of assets, such as stocks and stock options, that will be taxed to the holder regardless of which party receives the proceeds
Our skilled lawyers work closely with clients, financial planners and tax experts to ensure that clients have the personalized advice they need to consider the tax consequences of divorce thoroughly before decisions are made. We make a commitment to help clients achieve the best resolutions possible, factoring in all related issues to help them succeed.