Tax Implications of Divorce in Tennessee
Experienced Murfreesboro divorce lawyers use strategic planning to maximize value of divorce settlements
Tax time is upon us. And while the thought of filing taxes is greeted with a groan by many a taxpayer, it is an even bigger headache to those individuals who are newly divorced. Filing taxes after divorce can be problematic. Failing to anticipate the tax consequences of divorce can make the process of divorce even more costly. The experienced Tennessee divorce lawyers at Dotson & Taylor Attorneys at Law apply their knowledge of both Tennessee and federal tax law during the divorce planning process to maximize the value of divorce settlement agreements for their clients.
Don’t wait until after the divorce to consider taxes
A big mistake many divorcing couples make is to wait until after the divorce to consider the tax implications of divorce. This can be quite costly. Make tax considerations part of your divorce planning instead. Discuss the division of marital assets and how property division will be handled. Determine the impact of state and federal tax law on alimony determinations. Consider college expenses as they relate to child support. With the appropriate legal counsel, you can anticipate many of these tax problems and address them in your divorce planning to achieve the most favorable post-divorce tax scenario. Our skilled complex and high-asset divorce attorneys work closely with your tax professionals and often consult and even retain outside financial professionals to play an active role in the tax implications of your divorce property settlement and alimony award scenarios.
What are some of the tax implications of divorce?
Divorce can have a significant impact on your taxes as it determines what exemptions you claim as well as the deductions. Some of the other tax implications of divorce include:
- Division of exemptions of dependent children
- Capital gains
- QDRO (Qualified Domestic Relations Order) for purposes of dividing pension and retirement benefits
- Tax consequences of selling your primary residence
- Considering joint and/or separate filing status in the year the divorce became final
- Alimony recapture with the IRS
Our divorce attorneys work closely with you and engage outside financial experts when necessary in order to find the best divorce tax solutions for you.
Don’t let tax liability undermine your divorce goals
The divorce process is difficult enough without the extra complications that tax liability brings to negotiating a settlement. Don’t let tax liability stand in the way of achieving your divorce goals. The nationally-ranked Murfreesboro divorce lawyers at Dotson & Taylor Attorneys at Law help clients with uncontested, contested, and high net worth divorces maximize the value of post-divorce settlements by using strategic planning that reflects tax considerations. With more than 40 years of combined experience, our legal team is knowledgeable and sensitive to the issues surrounding divorce. To schedule a free consultation, contact our office today at 615-890-1982 or online. Weekend and evening appointments are available upon request for your convenience.