As you know, divorce is a complex process, and in many ways. Unfortunately, it is something that around half of all Americans go through. During the divorce process, you are most likely worried about several key terms, including those regarding child custody, child support, alimony, and property distribution. That being said, while these are all very important, you should strongly consider the tax implications of your divorce as well. Considering and accounting for the tax implications of a divorce is a critical step in setting up your financial budget. Please continue reading and speak with our knowledgeable Los Angeles divorce attorneys to learn more about the tax implications of a divorce in California.
Things to Consider Regarding the Tax Implications of a Divorce in CA
There are various things anyone should consider regarding the tax implication of a divorce in California. Some of those are as follows:
- Understand that only one spouse can claim their children on their taxes every year, meaning only one parent will receive tax benefits, even if there is a 50/50 custody agreement in place. That being said, spouses can trade off on claiming their children every other year, so that they may both receive tax benefits.
- When tax impacts of assets to be split are in the settlement, ensure the after-tax amounts are what is calculated, not the before-tax amounts.
- If you have a tax refund coming, ensure that the refund is listed during settlement negotiations.
- If you and your spouse own a business together, there is a very good chance that you may have loss “carry forwards,” which are essentially losses from the previous year that the IRS allows certain people to put towards future taxable income, as well as a future tax bill.
If you have any further questions regarding the tax implications of a divorce, please do not hesitate to speak with our experienced California divorce attorneys today. Our firm has helped countless people over the years, and we are ready to help you too.
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.