Mokena Divorce Tax Strategy Attorney

Lawyers For Tax Considerations in Divorce Cases in Orland Park

Over the course of your divorce, you will be required to address a wide variety of legal and financial issues in order to complete the process of dissolving your marriage. When you are making the hard decisions about how to restructure your life, you should be sure to consider all aspects of your situation, including the tax implications of these decisions. In order to ensure that these matters are handled properly, it is important to work with a skilled divorce lawyer.

The attorneys of Wakenight & Associates, P.C. have more than 95 years of combined legal experience, and we have represented clients in a wide variety of divorce cases. We understand the legal issues involved in high net worth divorce, and we will work to protect your interests and ensure that you have the financial resources you need.

Tax Issues to Consider During Divorce

If you do not pay close attention to how your taxes will be affected by the decisions made during divorce, you could be blindsided by a large tax bill or other issues that could have a major impact on your finances. Some tax-related issues to be aware of include:

• Filing status - While your divorce is pending, you and your ex-spouse may be able to work together for each other's mutual benefit by filing a joint tax return. If your divorce was finalized during the previous year, you must file taxes separately, but if you were still legally married after December 31 of that year, you may both be able to realize some tax savings by filing jointly.
• Asset division - While you will not be required to pay taxes on any assets transferred between spouses as part of your divorce settlement, you may be required to pay capital gains taxes on property sold during divorce, such as a marital home. In addition, you should be aware of the tax consequences of withdrawing funds from a retirement account, although this can usually be avoided through the use of a Qualified Domestic Relations Order (QDRO).
• Spousal maintenance - Under current tax laws, spousal support is not considered taxable income for the receiving spouse, and the paying spouse cannot deduct these payments from their taxes. However, if you finalized your divorce prior to January 1, 2019, alimony may be taxed differently, and you should be aware of how your taxes may be affected by any modifications to your divorce decree.
• Child custody - In most cases, the parent with the majority of the parenting time will claim a child as a dependent on their taxes and be eligible for child tax credits. If you are the non-custodial parent, and you had previously claimed your child as a dependent, you may need to update your tax withholdings.

Contact Our Will County Divorce Lawyers

Taxes can play a large role in your financial security after divorce. At Wakenight & Associates, P.C., we can help you understand the best tax strategies during and after your divorce, and we will work to protect your financial interests when making decisions about marital property, child custody, and spousal maintenance. Contact our office today at 815-727-6144 to arrange your free initial consultation. We provide dedicated representation to divorcing spouses in Mokena, New Lenox, Frankfort, Homer Glen, Tinley Park, Orland Park, Joliet, Oak Forest, Orland Hills, and Lockport.