The Basics of Divorce and Taxes

The Oklahoma Family Law Blog highlights some of the basic tax concerns that need be considered in connection with divorce.

Alimony is taxable and deductible. The person who provides alimony can claim the payments as a deduction, while the person who receives it can avoid a large end-of-year tax bill by paying estimated taxes during the year. Unlike alimony, child support is not deductible or taxable.
Who claims the children? The parent who has custody of a child usually can claim the child as a dependent. However, with the custodial parent’s consent, the parent without custody can claim the child. (The custodial parent may still be able to claim certain tax benefits related to the child, including head of household filing status, the Earned Income Tax Credit, and the child-care credit.)
Who is a head of household? There are several factors for determining the head of a household. A few include being considered “unmarried” on the last day of the year, having children or other dependents who live with you, and paying more than half the cost of providing a home for dependents. Taxpayers should consult with a tax professional to determine if they qualify for head of household status.
Divorce, annulment and legal separation are considered the same by the IRS for tax purposes. The way a tax return is affected by the situation depends on how the decree is worded, and in cases where state and federal law differ, the IRS will side with the federal government.

Taxes may even be used to facilitate settlements. For instance, by using the differential in tax rates between spouses, a settlement can be structured so that, in essence, taxes subsidize some maintenance payment.

For this reason I suggest that a settlement proposal be examined by a tax professional or a certified divorce financial planner.

14 Responses

  1. Some tips i have observed in terms of personal computer memory is that there are specs such as SDRAM, DDR and many others, that must go with the features of the motherboard. If the pc's motherboard is pretty current and there are no os issues, upgrading the memory literally will take under a couple of hours. It's on the list of easiest personal computer upgrade types of procedures one can imagine. Thanks for sharing your ideas.
  2. 11/4/2016 @ 11:55:58: Thanks for the post!
  3. 11/7/2016 I'm pleased by the manner in which deals with this type of issue! Generally to the point, often contentious, always thoughtful and stimulating.
  4. is quite a good read. I just now passed this on 11/9/2016 to a fellow student who has been involved in some work of her own on the topic. To say thank you, she just bought me dinner! So, I should probably say: Thank you for the meal!
  5. I'm gratified by the manner in which handles this kind of subject! Generally to the point, sometimes contentious, always well-researched as well as thought-provoking.
  6. is a well-written piece. I just now sent this on 11/16/2016 to a classmate who has been involved in some work of her own on this subject. To say thanks, she just bought me dinner! So, I should probably say: Thank you for the meal!
  7. If some one wishes to be updated with latest technologies afterward he must be pay a visit this site and be up to date all the time.
  8. Having read this I believed it was really informative. I appreciate you finding the time and effort to put this content together. I once again find myself spending a significant amount of time both reading and posting comments. But so what, it was still worthwhile!
  9. I completely agree with your take on this subject and look forward to upcoming posts and comments here at Thanks!
  10. I'm gratified by the manner in which deals with this kind of topic! Usually on point, sometimes contentious, always well-researched and also stimulating.
  11. does it yet again! Very interesting site and a thought-provoking article. Nice work!
  12. I used to be recommended this web site via my cousin. I'm no longer sure whether or not this submit is written via him as nobody else understand such special about my difficulty. You're wonderful! Thank you!|
  13. we love to the right here present in belguim. there were really love to order online
  14. Greetings! Very useful advice within this article! It's the little changes that make the most significant changes. Many thanks for sharing!

Leave a comment

Contact Us Now!
(212) 683-9551