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Does divorce have tax consequences?

If you have recently gone through a divorce or are contemplating splitting up with your marital partner, you may have an assortment of questions, from alimony to visitation matters. In Lee County, and across the whole state of Florida, divorce could also affect you in other ways. For example, it may have a considerable effect on your taxes, which is especially important to understand during tax season.

According to the Internal Revenue Service, filing for divorce could affect your taxes in a multitude of ways. For starters, if change your last name, your tax refund may be delayed if your name does not match the Social Security Administration's records. Furthermore, your filing status may change, which can also have a huge impact on your tax return. If you receive alimony, you will be required to pay taxes on the payments. On the other hand, if you are responsible for paying alimony, you could be able to have these payments deducted. Unlike alimony, child support is neither taxable nor deductible.

For those who have a high net worth, divorce can be particularly challenging. In addition to the potential tax consequences of divorce, your financial future could be affected in other ways, such as the distribution of marital property. If you thoroughly evaluate your circumstances and take steps to protect yourself financially, you may be able to obtain an end result that is more favorable.

You should note that this write-up was arranged for general informational purposes and does not represent a substitute for legal guidance.

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Fried and fried, P.A. 2524 East First Street Fort Myers, FL 33901

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