We are not tax attorneys and do not give definitive tax advice, but we can refer you to qualified tax professionals.
Divorcing couples should consider these effects on their taxes:
Filing status and exemptions Dependent exemptions Spousal support Retirement benefits
Filing status and exemptions
A divorced or divorcing couple’s filing status is determined as of the last day of a tax year, usually December 31.
For tax purposes, a couple is no longer married when a judge signs a final divorce decree or separate maintenance judgment.
If you have had custody of a child for more than six months and are not remarried by the end of the calendar year, you may qualify for Head-of-Household status.
Parents often split the exemptions when there are multiple children.
Parents of one child often alternate the exemption.
Child support is paid in after-tax dollars. There is no deduction for it.
Spousal support is treated as income to the receiving spouse, and a tax deduction for the paying spouse.
Spousal support can be an effective tool for reducing taxes.
Retirement plans/benefits can be divided in a divorce. For employer-provided plans, a Qualified Domestic Relations Order (QDRO) assigns a portion of the benefits of a qualified retirement plan to a spouse.
IRA plans usually do not require QRDOs to be divided.
When the receiving spouse withdraws the money, that spouse will be taxed on the amount withdrawn.
Deductible spousal support has long been a way to divide family income and save taxes during and following a divorce. The higher wage earner shifts the tax s/he pays on spousal support to the lower wage earner or non-working…
In recent weeks, I have been pleasantly surprised to have my clients settle a number of very difficult cases in mediation, that had appeared insolvable. What these cases had in common was very difficult issues pertaining to their children. These…
Monika Sacks presented “Legal Residence/Change of Domicile” at the 2017 American Academy of Matrimonial Lawyers (AAML) Annual Advanced Family Law Seminar in Birmingham.
Monika Sacks was awarded the Blaine B. Johnson Jr. Award at the 14th Annual Family Law Institute for her outstanding CLE contributions. Monika (right) is with attorney Eileen Slank.
The Catholic Diocese of Lansing awarded Lori Buiteweg the Sir Thomas Moore award, which recognizes a member of the legal profession who demonstrates outstanding personal integrity, community service, and professional excellence.
Like many things in life, a do-it-yourself approach often costs you more money—and considerably more time—than hiring an experienced professional in the first place. Divorcing couples may think they’ve resolved 90% of their issues, only to find out that the “holes” in their informal agreement put one of them at a distinct disadvantage. More