Neither divorce nor taxes are much fun by themselves, so it’s no surprise that many people are reluctant to think about how a divorce could affect their taxes. But if you’re getting a divorce and you have any amount of marital property, thinking about the tax consequences of divorce now could help you avoid taking a major tax hit later, making a mistake on your tax forms or setting up a financial situation that’s unfair to one or both spouses. Common tax mistakes people make right after a divorce include:
As with all matters related to taxes, this can get complicated very quickly. Some deductions depend on your ability to take other deductions. Others may depend on your marital status; in fact, it may be financially advantageous for some couples to stay legally married for a few more months. And alimony-related issues can have substantial tax savings or penalties attached because alimony is generally granted only to couples in a high tax bracket. Alabama Divorce & Family Lawyers, LLC can help you understand some of the complexities of post-divorce taxation and help you save the most money possible.
After the financial and emotional difficulties of a divorce, the last thing most people want is another huge bill on April 15. The experienced Birmingham divorce attorneys with Alabama Divorce & Family Lawyers, LLC can help. Our firm already helps clients preserve assets through a divorce, a process that takes into account tax consequences as well as the consequences of issues like abuse of joint bank accounts and confusion over who pays the mortgage.
For all clients, Alabama Divorce & Family Lawyers, LLC can recommend basic steps to protect your assets right now, tailored to your tax bracket and property situation, both pre- and post-divorce. We start before your divorce is final, to help you choose the best possible filing status and avoid making mistakes when you split your assets. For clients with complicated finances, we can recommend a reputable divorce taxation specialist who can help you understand the details of your new financial situation. And, if it’s necessary in your case, we can ask the court for post-divorce modifications to your divorce judgment that help you keep the maximum amount of income.
$2,000 -FOR- 3 months
Many divorces can be completed in this time.
$10,000 -FOR- 1 year