Here at Zitser Family Law Group, APC, we know a lot about divorce and how difficult it can be for all parties involved. Unfortunately, divorce is far more than just another legal matter, and it can impact a person in multiple ways, including financially and emotionally. That said, we have a significant amount of knowledge regarding the financial aspects of divorce, and we use that knowledge to help our clients reach the best financial outcome possible, time and time again. One of the most important financial aspects of a divorce that couples commonly fail to consider is the tax implications of their divorce. That said, if you are going through the divorce process or you are about to, the best thing you can do is to continue reading and reach out to an experienced Los Angeles divorce attorney from our firm to learn more about the tax implications of divorce in CA and how we can help you reach a positive outcome.
What You Should Know About the Tax Implications of a Divorce in CA
Below, we’ve compiled a short bulleted list of things you should know about the tax implications of divorce here in the state of California. They are as follows:
- Tax refunds should also be listed as an asset when you are negotiating a divorce settlement.
- Spouses who co-own businesses should note that in many cases, they may have loss “carry forwards,” which essentially are losses sustained the previous year that the IRS will allow you to put towards future taxable income and a future tax bill.
- If you have a child with your spouse, you should understand that only one of you is allowed to claim your child on your taxes each year, and, therefore, only one spouse may receive tax benefits. There are ways to work around, this, especially if you and your spouse are amicable with one another. For example, you can each trade off on claiming your children every other year, or you can even receive the benefit and simply split it half and half each year as well.
- Note that when the tax impact of the assets you split are in your divorce settlement, you should always calculate the after-tax amount, not the before-tax amount.
Contact our experienced Los Angeles firm
Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.