Houston Tax Related Issues in Divorce Lawyers
Along with working through a number of issues, such as the division of property, establishing child custody and visitation, and child support payments, divorce also has a number of significant tax implications one should be aware of prior to pursuing divorce. Unfortunately, the tax consequences of divorce are often overlooked by couples, a potentially serious mistake that could cost them thousands of dollars.
The relationship between divorce and taxes can be very complicated and difficult to understand, especially if you have no prior education or experience working with tax law. If you have questions about divorce and how it will impact you financially, contact the Houston tax issues divorce lawyers of Holmes, Diggs & Sadler today at (713) 802-1777.
Important Tax Issues You Should Be Aware Of
By speaking with an attorney, he or she can make sure you understand how divorce impacts your taxes in the following ways:
- Filing status – This determines the deductions or credits available, the amount of standard deduction, and the correct amount of tax.
- Child support – Child support payments are never taxable income for the payee and is not considered a deduction for the payer
- Alimony – This is considered taxable income for the payee and a deduction for the payer
- Tax deduction – The spouse who has primary custody of the children will receive the child’s tax deduction
- Property division – Dividing martial property is generally considered nontaxable. This also includes scenarios where one spouse transfers property to the other.
- Attorney fees – Generally, attorney fees related to the divorce are not tax deductible. Some exceptions include fees for tax advice, help in determining alimony, and fees determining estate tax consequences.
Because of the inherent complex nature of tax law and divorce, having a competent and knowledgeable attorney supporting you will be invaluable.
You need to speak with a professional about the tax implications of your divorce to ensure you don’t end up in legal trouble. For more information about how your taxes are affected by divorce, contact a Houston divorce attorney of Holmes, Diggs & Sadler at (713) 802-1777 today.