Even under the best of circumstances, most of us don’t relish the idea of paying taxes. This can be particularly true in difficult times. Facing a divorce and worrying about how your divorce might affect you from a tax perspective is doubly unpleasant. It’s an important question to ask though – how will divorce impact your taxes? You might be unsurprised to discover that there is no easy answer. How divorce will affect the amount you owe (or can deduct) on your taxes will depend largely on your circumstances and the issues that need to be addressed as part of your divorce.

We hope that the resources provided in this section can provide some helpful information regarding issues that commonly arise during divorce proceedings, and how they might affect tax obligations, including:

  • Alimony: Alimony, or spousal support, is the regular payment of money by one spouse to another following a divorce. While it is not always awarded, when it is, it is important to know that generally, if the award was made any time in 2019 or after, alimony payments cannot be deducted by the paying spouse, nor does the receiving spouse report them as income. 
  • Child Support and Child Custody: Generally, the Internal Revenue Service has determined that child support payments are neither deductible nor taxable. Nevertheless, it is still important to consider issues like which parent will claim the children as dependents for purposes of claiming a dependent exemption, and which parent will be able to claim various child tax credits that may be available under the law depending upon particular circumstances. Talking these things through with your co-parent, and with your attorneys will be important as you decide 
  • Property Division: Property division is certainly one of the areas of divorce where tax issues can become more complicated. Often, and particularly if a couple has been married for some time, there can be a variety of types of property to divide – the marital home, pension and retirement accounts, vehicles, bank accounts, investment accounts, and real estate are only a few of many examples. Unfortunately, there is no bright-line rule when it comes to exactly how dividing your marital property might affect your taxes, as each individual circumstance is slightly different. The wisest course of action in any situation is to consult with your attorney and with a qualified financial advisor who can provide you with the appropriate guidance and information about your situation.
  • And more: Every divorce, just like every couple, is unique. There are some tax issues you may face that are less common, but they are just as important to consider thoroughly as you move through the divorce process so that you can make informed and thoughtful decisions.

Certainly, while we hope the resources included here are helpful, they are no substitute for personally seeking the advice of an attorney who can advise you as to how the law might apply to your particular circumstances in your divorce. At The Law Office of Dustin McCrary, we’re here to help. Call us at any time.

STATESVILLE, NC
Divorce Lawyer

102 W Broad St
Statesville, NC  28677

(704) 380-0456

MOORESVILLE, NC
Divorce Lawyer

106 Langtree Village Dr
Suite 301
Mooresville, NC. 28117
(704) 593-6688

Hickory, NC
Divorce Lawyer

520 8th St NE
Suite #108
Hickory, NC 28601
(828) 459-6464

Lenoir, NC
Divorce Lawyer

118 Main St NW
Lenoir, NC, 28645
(828) 221-2999

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