San Diego Family Law Attorneys Handling Tax Issues and Divorce
Going through a divorce is never easy, no matter how ready you are to move on to the next chapter of your life. Aside from having to deal with a mix of emotions when a marriage ends, there are also many details and financial issues that must be figured out. One of the biggest economic impacts a dissolution of partnership has on each of the parties involved concerns income taxes. For most people, filing taxes is a complicated enough task already without adding in the circumstances of a divorce. Regardless, it's a significant aspect in the process that cannot go ignored.
Mattis Law, A.P.C. is a family law firm in San Diego that specializes in representing clients who need professional guidance navigating through the complexities that emerge when the worlds of divorce and taxes collide. We understand the various types of tax issues that have the potential to arise in divorce proceedings and know how to address them appropriately. As a client of ours, you can rest assured that we will explain all the tax implications that may affect the final outcome of your divorce settlement so you can make informed decisions about your future.
There are a variety of tax issues that divorcing couples should take the time to learn more about. A new marital status means there will be changes in how income taxes are filed. The most common tax considerations in California include:
- Alimony Deductions: When an alimony payment, or spousal maintenance, is ordered in a divorce, the payer is able to deduct the amount on their taxes. The former spouse receiving the alimony will be required to report the amount on their taxes as income.
- Dependent Exemptions: If a divorcing couple has children, custody is typically a major matter that must be worked out, which also has a big impact on taxes. Once the custodial parent has been decided, it's time to agree on who will be claiming the dependent on their taxes. There are considerable tax deductions for a dependent, often making it difficult for parties to come to terms on this issue. To avoid problems down the road, it is standard practice for an attorney to advise a client who is entitled to claim dependent exemptions to get a signed IRS Form 8332 from the other party.
- Filing Options: The filing status for an income tax return will depend on the legal marital status of the couple at the end of the calendar year. If a divorce is still pending, the couple has the option to file jointly, married but filing separately, or independently. The decision can be difficult to make without discussing the potential outcomes for each option with a professional first. It's essential to go over the tax burdens and benefits of all the choices in order to maximize tax gains and lower liabilities.
Additional factors that often influence tax returns during or after a divorce include child support, retirement accounts, division of property, and legal fees when it involves getting tax advice from a divorce attorney.
There are a number of financial issues to be considered in divorce cases, making it vital to have proper legal counsel working on your behalf to protect your best interests. At Mattis Law, A.P.C., you will find dedicated San Diego family law attorneys that have the experience and knowledge to help you resolve all your tax issues. Contact our San Diego office at (858) 328-4400 to schedule your free consultation.