Mississippi Divorce Attorney Discusses Tax Considerations for Divorcing Couples

If you are getting divorced, you are probably well aware that there will be changes in just about every area of your life. Some of the changes are not too hard to understand, but some can be a little tricky. Taxes are tricky whether you are getting divorced or not, so you may not be all that surprised when you find yourself looking at your tax forms and wondering how to proceed with them.

The issue of filing status is one of the easier divorce tax questions to deal with. If your Mississippi divorce did not become final before Dec. 31, 2014, you can file your taxes jointly with your soon-to-be-officially-ex-spouse this year and change your filing status next year.

Some tax matters are negotiable, which means that divorcing couples can include provisions for them in their parenting plans and property distributions. For example, a couple with two children may agree that each year, each parent will claim one of the children as a dependent on their tax return. Other couples may decide that each spouse gets to claim all of the children on their tax return in alternating years, or they may make some other arrangement that better meets their needs.

Sometimes, divorced parties must make payments to their former spouses for alimony or child support. These two types of payment are treated differently at tax time, so it is important that you understand the difference between how they are treated. For example, a spouse who receives alimony payments will pay taxes on the amount that they receive, since it is a form of income. Former spouses who pay alimony can deduct the amount that they pay from their taxable income. Child support is not considered income for tax purposes, and people who pay child support do not, per se, get a tax break for doing so.

When you divide marital assets in a divorce, it is important to do so properly. For example, if one of the assets to be divided is a 401(k), you can avoid having to pay early withdrawal penalties and income tax on the amount that is to be transferred to your former spouse if the transfer is made with a QDRO, or Qualified Domestic Relations Order.

Other types of transfers that you may make during or after your divorce can trigger tax consequences for either or both spouses. Things like mortgage interest, capital gains on the sale of the marital home, and taxes on transfers of other assets can catch some people by surprise. The best thing that divorced or divorcing parties can do in order to ensure that they make tax-savvy decisions during their Mississippi divorce is to consult with an accountant both during and after the divorce.

A skilled divorce attorney can help you with divorce-related tax questions and all of the other aspects of your Mississippi divorce.  Mississippi Divorce Attorney Matthew S. Poole has helped many Mississippi residents achieve positive results in their divorce cases, and he can help you, too. Please call our office today, at (601) 573-7429, to set up a free consultation.

 

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Mississippi Divorce Attorney Discusses Tax Considerations for Divorcing Couples
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Mississippi Divorce Attorney Discusses discusses tax issues in divorce cases.

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