Elgin Lawyers Resolving Divorce Tax Issues
Tax issues are not always something that people consider in their divorce. These issues can have a great deal to do with your financial standing after your divorce. When deciding how to distribute marital property, tax considerations should be at the forefront of your attorney's mind. We are the lawyers of Brady & Jensen. With offices in Elgin and Geneva, we have a comprehensive understanding of how taxes can impact your divorce. We are a full service law firm and represent clients in all types of tax and family matters.
Taking All Tax Issues Into Account in a Divorce
Some of the more common tax issues in divorce include:
- Once the parties are divorced, each will be filing taxes as individuals rather than jointly. While the divorce is going through the legal process, it may still be advantageous for spouses to file jointly rather than separately.
- Alimony is taxable to the recipient and deductible to the payor. Depending on each spouses' needs, it may be sensible for a spouse to receive a lesser share of the marital estate and a greater amount of spousal maintenance.
- There are a number of tax benefits associated with children, including the child dependency exemptions, educational deductions and other assorted credits and deductions. In most cases, the parent who spends the most time with the children receives these benefits.
- If the property distribution is going to allow one spouse to share in the other's pension, a Qualified Domestic Relations Order (QDRO) will ensure that the spouse who is giving up pension benefits is not taxed on those benefits.
There are numerous tax-related issues when one or both spouses own a closely held company or professional practice. Assuming one spouse gives up his or her interest in the business, it is critical that your attorney can develop plans to minimize the potential tax burdens. Our law firm can adequately address all tax issues arising out of your divorce.
Contact the Elgin Tax Issues Divorce Lawyers of Brady & Jensen
We offer a free initial consultation to discuss your situation. Call us toll free at 866-930-2063 or e-mail us today.
