A dissolution of your marriage will trigger many different tax implications. For example:

• Depending upon your family’s history, your filing status may change from married filing joint tax returns to filing as a single taxpayer or head of household. For many people, it is important to adjust their W-2 withholdings accordingly.
• Spousal support obligations (maintenance/alimony) will impact your tax liability(ies). For example, spousal-maintenance or alimony is taxable income to the recipient and is deductible by the person who pays it.
• Parents of minor children should consider and determine in their settlement discussions who is going to claim child dependency exemptions (and child care credits, if applicable) in current and future tax years.

Internal Revenue Code transfer/division of property incident to a dissolution of marriage is not a taxable event if properly handled by attorneys and accountants.

The attorneys at Sparks Integrative Family Law have experience in working in connection with accountants to ensure that their clients understand all tax implications from a potential settlement agreement or court order. If you are considering a dissolution of marriage, contact us to learn more about the financial information you will need to make informed decisions about your case.