Divorce is an emotional and legal issue, but, of course, it’s also largely a financial one. Often, many people primarily worry about their bank accounts, possessions, real estate, and more. However, one of the most important financial considerations when it comes to divorce is tax implications. Please continue reading and reach out to an experienced Los Angeles divorce attorney from Zitser Family Law Group, APC today to learn more about post-divorce tax mistakes to avoid.
Tax Mistakes You Should Avoid Post-Divorce
Just some of the most important tax mistakes you should avoid after your divorce are as follows:
- Improperly filling out information. This is true when it comes to all tax-related documents, but it’s especially true after a divorce. This means you must spell your name correctly, fill out all financial information correctly, and more.
- Neglecting to stay informed about the alimony tax credit. Alimony is no longer tax-deductible, and if you are someone who pays alimony, you need to account for this.
- Failing to split retirement funds without a QDRO. Without a qualified domestic relations order, you will face steep penalties if you try to split your retirement funds.
- Neglecting to understand how child support tax credits work. Child support is among the most important divorce-related issues. Typically, the parent with primary custody of their child is the one who will receive the child support tax credit, however, if parents have shared custody of a child, they may alternate who receives the tax credit each year (only one parent can receive the credit at a time). Ensure you iron this out with your spouse each year.
If you have any further questions about the potential tax implications of your divorce and how you can avoid certain critical tax-related mistakes, simply pick up the phone and give us a call today. Zitser Family Law Group, APC has significant experience helping clients through the financial aspects of divorce, and our legal team is prepared to do the same for you. Our goal is to help you move on to a financially prosperous post-divorce life.
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.