Divorce can significantly impact the amount of tax you owe.

Tax Guidance

Get the general tax guidance you need so you can keep more money in your pocket, and negotiate more easily with your spouse. We also make sure those terms are put into your marital settlement agreement, in accordance with the IRS.

What we help you work out in mediation:

How will my divorce affect how much tax I have to pay? 

Tax liability can be a forgotten consideration in a divorce settlement. Things will seem more fair once you factor this in.

We help spouses identify and evaluate tax scenarios that are most advantageous financially in Year 1 of divorce:

  • New income taxes to expect upon divorce.
  • Child dependency exemptions and tax credits to claim.
  • Tax penalties you could face for retirement withdrawals and transfers.
  • New property taxes from ownership or sale of property.
  • Tax savings that could offset alimony payments.
  • Whether to file jointly, individual or head of household.
  • Health care credits or deductions for medical premiums to take

Who should claim the children?

Custody arrangements can affect who claims the children as dependents on your tax return.The good news is you are free to negotiate this in mediation. It’s best to decide this now to avoid any issues when you file.

We help you figure out who should claim the children by:

  • Finding dollars in the budget to balance the greater tax burden on one parent
  • Discussing whether spouses should re-negotiate custody arrangements to ease the tax load.

For more complex tax issues (i.e. bankruptcy), we include tax specialists in the process, whether your accountant or one of our trusted partners. While we are not tax accountants, we are qualified to steer you in the best direction to reach a fair settlement.

“I felt better about my financial situation, once we went over taxes. Plus, I was so much better prepared to meet with my accountant.”