Marriage Is Over, Tax Stress Is Just Beginning for Newly Divorced
Divorce can be stressful. Though it is usually in the best interest for everyone involved for the long-term of life, divorce can throw a wrench into the mix of what used to be standard routines. Times of confusion and stress will arise, but there are professionals and advice to help get to the other side.
Once a couple is married, they file their taxes jointly. That becomes the norm. It is very likely that one of the spouses had taken on the duty of filing taxes throughout the marriage. When a couple gets divorced, the one who never handled much of the tax business is in for the tax-filing stress that most people struggle with every year.
There are specific issues that someone must consider when handling their taxes for the first time after or during the process of divorce. The following is just the first of more tips to come.
Alimony: How much a person pays in taxes will depend on the amount of income they earn. Alimony is counted as income. Therefore, when reaching an alimony settlement the person who is to receive the support payments will want to understand which tax bracket they will fall into when adding the agreed alimony amount to the rest of their taxable income. They should negotiate an amount that not only supports them but makes tax sense, too.
Our next post will continue this divorce and tax discussion. Our Pennsylvania family law attorneys help answer our clients' questions about divorce, alimony, child support and the tax implications that come along with the various aspects of family law matters.
Source: Forbes, "Taxes And Divorce: 6 Tips For Women," Kerry Hannon, March 7, 2013