Divorce and Tax Issues - Parties in a divorce proceeding, either one or both, could be in the process of being audited by the Internal Revenue Service or Illinois Department of Revenue either for personal or business reasons...
Tax Returns Provide Clues to Income in Divorce - The detail review of a divorcing couple’s tax return can provide attorneys with a plethora of information that may help their clients attain a more financially equitable divorce settlement...
Tax Traps to Avoid During Divorce - It is recommended that you hire a CPA to complete your tax return the first year after your divorce. Your divorce may finally be over, but the tax effects can continue for years...
Tax Consequences of Alimony - One of the worst parts about getting a divorce is the payment of alimony. However, there is a silver lining to the misery of paying alimony; alimony is tax deductible to the payor. Alimony also must be reported as taxable income by the ex-spouse who receives it...
Which Spouse Can Claim the Dependency Exemption(s)? - In most divorce cases, the parties reach an agreement as to which spouse can write off the children, and claim them as dependents. However, as we all know divorced spouses constantly break the terms of the PSA. A frequent post-judgment issue is which spouse is entitled to claim the dependents...
Taximony! How the Government Shares in Your Divorce - "Everything appears to promise that it will last; but in this world nothing is certain but death and taxes." So said Benjamin Franklin. While sometimes marriage also fails to meet the promise it will last, the taxman is eternal...
Unreported Income and Hidden Assets - Unreported income and hidden assets are often alleged in divorce proceedings, with the spouse who is not running the business claiming that unreported income should increase both the spousal support award and the valuation of the family business...
Tax Issues in Divorce - If spousal support is paid to one party by Court order or written agreement, such amounts are taxable income to that party and the amount of such payments are deductible for tax purposes from the income of the paying party...
Innocent Spouse Relief Under Internal Revenue Code Section 6013(E)(1) - Most family practitioners are aware that if a spouse involved in a divorce is self-employed, a corporate officer with a controlling interest in a small corporation or a partner in a professional partnership, income may not be accurately disclosed on his or her financial affidavit...
The Taxpayer Relief Act of 1997 - On August 5, 1997, President Clinton signed the Taxpayer Relief Act of 1997 into law. We suggest that you don't make any major financial decisions before reading this article and following-up on the particular areas that might impact you...
The House-What Happens in Divorce-Don't Ignore the Tax Consequences - Following child custody, no issue seems to cause more emotional trauma to people getting divorces than what happens to "The House." However, many people make significant financial mistakes in dealing with the house that can prove expensive. Hopefully, after reading this article, you will be able to evaluate the various alternatives a little more intelligently...
The Tax Aspects of Divorce - It is strongly recommended that before any settlement agreement is finalized, that the parties consult with a tax attorney or tax accountant to review the tax consequences of the agreement. This article is not meant to be a complete analysis of the Internal Revenue Code, but a general outline of some of the tax ramifications of divorce and separation...