Five Tax Issues To Be Aware Of When Getting A Divorce In Fort Lauderdale
Tax season is fast approaching, and it is important to be aware of how changes in your marital status could impact your current tax situation. Our Fort Lauderdale divorce lawyer addresses five important issues in divorce to be aware of this tax season.
Tax Concerns When Getting A Fort Lauderdale Divorce
The deadline for filing your 2022 tax returns is April 18, 2023. If you are currently going through a divorce in Fort Lauderdale or recently received a final divorce order through the Broward County Family Court, it is important to be aware of how it could impact your tax returns. The following addresses five common areas of concern:
- Changes in Filing Status
Under Internal Revenue Service guidelines, your marital status as of December 31, 2022, determines how you file in April of 2023. If your divorce was granted prior to that date, you will need to file an individual return. If your divorce case has not yet been resolved, you will likely want to use Married Filing Separately. However, review this with your accountant. In some cases, it may be in your best interests to file together one last time.
- Marital Property Division
Marital property division is a major issue in divorce, and a common question concerns whether you will need to pay taxes on your divorce settlement. Generally, the answer is no. However, if you ended up selling property during these proceedings and made a profit, you may be required to claim this income.
- Spousal Support
Previously, anyone paying spousal support was entitled to claim it as a deduction on their tax return, while the receiving spouse would need to claim it as income. This changed several years ago. If you got a divorce in 2022, or are in the process of getting one now, you do not need to list spousal support on your tax return.
- Child Time-Sharing and Support
One of the most contentious issues surrounding divorce and taxes concerns who gets to claim the children as dependents. Generally, this will be the parent they live with the majority of the time. Make sure your attorney clarifies this matter as part of any final divorce settlements or orders.
In regards to child support, it is not taxable and does not need to be claimed on your return. However, be aware that if the other parent refuses to pay, they could be subject to enforcement efforts which include seizure of any tax refunds owed.
- Retirement Benefits
This is a major issue in divorce and could significantly impact your taxes. If you receive a portion of your spouse’s retirement benefits as part of your divorce settlement, give careful consideration to how payment is made to avoid tax penalties.
Request A Consultation With Our Fort Lauderdale Divorce Lawyer
At the Law Offices of Vanessa L. Prieto, we provide trusted legal guidance through all aspects of your divorce proceedings. To request a consultation with our Fort Lauderdale divorce lawyer, call or contact us online today.