blog home divorce irs tax issues - Chicago Illinois Family Law Blog

divorce irs tax issues - Chicago Illinois Family Law Blog

Resolving Tax Matters during Divorce Essential to Avoiding Problems after Divorce

By Nottage and Ward on March 21, 2012

Financial issues are common in many marriages and, in some, may even be severe enough to lead to divorce. But the financial problems may not stop there. Divorced couples often experience financial issues after divorce due to unforeseen tax implications which were not addressed in the terms of the divorce. This can not only result in ongoing animosity between the couple but also potentially cause serious tax issues. No one wants the Internal Revenue Service (IRS) breathing down their necks, so it is important to address the following tax matters in your divorce:

    • Deducting Legal Fees – Typically, you cannot deduct legal fees on your tax return; however, if the fees are related to the allocation or protection of income-producing assets, then the fees can be deductable. Before you file your tax return, know what you can deduct and what you can’t.
    • Filing Status and Exemptions – A very important issue to resolve during divorce settlement negotiations is who will be claiming the children, or who will claim which child. In addition, matters related to the “head-of-household” filing status and exemptions must also be resolved.

Read more…

Little Black Pearl The Business of ArtWe are proud sponsors of Little Black Pearl Art and Design Center.

To learn more, click here.

Friends of the Chicago RiverProud Member of Friends of the Chicago River.

To learn more, click here.

Client Reviews

Five Stars5 Leslie has been the strongest representation I could ask for

Leslie has been the strongest representation I could ask for in a very complicated, emotional matter. She has continuously looked out for my best interest and the best interest of my son. She is always prompt in getting back to me and in keeping me well informed about my case.
-

Read More Client Reviews

Avvo Top Contributor Family Law - Jeffrey Knipmeyer
Avvo Top Contributor Divorce Law - Jeffrey Knipmeyer