Divorce is a difficult process, emotionally and financially. Before you blindly step into the stressful process, there are steps you can take to empower yourself by getting your financial ducks in a row. Taking the following steps can help make things run more smoothly and even lower your eventual legal bills by being so prepared…. Continue Reading
Category Archives: Tax Issues
Subscribe to Tax Issues RSS FeedThe Benefits of a Post-Nup in South Carolina
Posted in Alimony, Assets and Debts, Child Custody, Child Support, Communication, Dispute Resolution, Divorce, Financial Issues, Prenuptial Agreements, Tax Issues, VisitationThough prenuptial agreements are commonly referred to a distant cousin, the postnuptial agreement is far less often seen. Though more infrequently used, it can still be a very powerful and important tool for couples to consider to protect their assets in case of divorce or separation. The only difference between a pre- and post-nuptial agreement… Continue Reading
The Confusion of a QDRO
Posted in Assets and Debts, Divorce, Financial Issues, Jurisdiction, Procedure, Separation, Tax IssuesThe word itself seems very bizarre: QDRO. What is it exactly and why should you care? Well, if you’re going through a divorce you’ve likely seen some mention of the acronym. First things first, a QDRO stands for “Qualified Domestic Relations Order.” Now, what does it do you might be asking. Well, according to a… Continue Reading
Divorce-Related Tax Tips Just in Time
Posted in Alimony, Child Custody, Child Support, Divorce, Financial Issues, Tax IssuesWhile the rules for divorced taxpayers have not changed to terribly much in the past few decades, divorce has. Joint custody and other changes in the way people split property have succeeded in making figuring out what is owed to Uncle Sam and by whom harder than ever. The following are five tips on some… Continue Reading
How South Carolina Parents Can Claim Dependent Children
Posted in Child Custody, Children, Financial Issues, Tax IssuesMany people going through a divorce have questions about what to do come tax time with their dependent children. When and how a person can claim a child following a divorce can depend on a number of factors. The first step before you claim a child as a dependent is to make sure he or… Continue Reading
Introduction of New Tax Law in 2011
Posted in Tax IssuesThe following Guest Post is from Marc Brown: Taxpayers are expected to be overwhelmed with the introduction of the list of new tax laws. Both low and high income families will be affected with the new changes in the tax law of 2011. Although there are very limited cost effective changes on the list, the revision… Continue Reading
Tax Resources for Separated and Divorcing Couples
Posted in Tax IssuesIt’s tax time, and divorcing couples have (or should have) lots of questions about how to handle their tax situations. Our firm does not provide any tax advice, but the Pennsylvania Family Law blog recently published an excellent article to help those in that situation deal with the following issues: Tax Deductions Tax Credits Joint Tax… Continue Reading
Dependency Exemption Basics for Divorced Parents
Posted in Tax IssuesTax season has arrived and with it questions as to tax treatment of children of divorcing or divorced parents. For purposes of this article let’s deal with the most basic, the "dependency exemption". According to the IRS, the parent who has custody of his or her child for more than one-half the year can claim… Continue Reading
Can a Child Be Treated as a Dependent of Both Parents for Tax Purposes?
Posted in Tax IssuesRevenue Procedure 2008-48, released by the Internal Revenue Service, describes the circumstances under which it will treat a child of parents who are divorced, separated, or living apart as the dependent of both parents. These circumstances are very specific, and they deal with §§ 105(b), 106(a),132(h)(2)(B), 213(d)(5), 220(d)(2) and 223(d)(2) of the Internal Revenue Code… Continue Reading
Which Parent Can Claim the Child as a Dependent on His/Her Income Tax Returns?
Posted in Children, Tax IssuesFrom The Oregon Divorce Blog: Clients often come to me asking whether they or their ex-spouse/unmarried parent of their child can claim their joint child as a dependents for tax purposes and receive the dependent tax exemption. They often think that this is a decision that is up to them and attorneys often use it… Continue Reading
Federal Income Tax Principles Related to Divorce
Posted in Tax IssuesAs you are aware, tax filing day (April 15th) is next week, and the following article from the Chicago Family Law Blog provides an excellent analysis of several important issues that divorcing couples face. Prior to filing for divorce, various federal tax considerations should be reviewed due to their potentially profound implications. Among the major… Continue Reading
Income Tax Filing Status and Divorce
Posted in Tax IssuesYour marital status on the last day of the tax year determines your income tax filing status for that tax year. If you have a final decree of divorce as of December 31, you can file as single, or you may qualify for head of household status. However, if your divorce is not yet final… Continue Reading