DuPage County Tax Consequences and Divorce Attorneys
Experienced Divorce Tax Consequences Lawyers in Lombard, Naperville, and St. Charles
When a marriage is dissolved, there are many issues that must be addressed. One of the most often overlooked issues is the impact the divorce has on the taxes of each spouse. Some spouses may agree on a settlement that appears to meet their needs until it comes time to file taxes, at which point they encounter some unpleasant surprises. If you are considering a divorce, it is important to work with a family law attorney that can help you fully understand the tax consequences of your divorce and ensure that your financial interests are protected.
At Mevorah & Giglio Law Offices, we have provided skilled representation for divorcing clients in the greater Chicago area and throughout Illinois for over 40 years. Our award-winning lawyers have a great deal of experience in even the most complex divorce cases, including those involving difficult issues such as taxes, debt division, bankruptcy, retirement, 401k accounts and pensions, and many others. We put this experience to work to provide clients a holistic solution that addresses all known issues and helps them come out of their divorce in the best financial position possible.
Our attorneys are highly recognized not only for our skill and experience, but for our down to earth approach and unwavering commitment to serving the interests of our clients. We understand the financial and emotional strain a divorce can have, and we work hard to guide our clients through the legal process as smoothly and seamlessly as possible. We provide extended evening and weekend hours, and we also respond quickly to all client inquiries.
Tax Consequences and Divorce in Illinois
Taxes can impact several parts of a divorce, including:
- Child Custody: Custody and visitation arrangements have become more complicated in recent years. Today, many divorcing spouses retain joint custody. Since the IRS only allows one party to claim a child as a dependent, it must be decided ahead of time how parents will claim children on their taxes each year. In many cases, the parent who children live with most of the time will claim children as dependents, but the parents may be able to work out an arrangement in which each parent claims different children or parents claim a child in alternating years.
- Alimony and Maintenance: Child support payments are not tax-deductible for the paying spouse, and they are not considered taxable income for the recipient. For divorces finalized after December 31, 2018, spousal maintenance is treated the same as child support, and it is taxable for the payor, not the recipient. However, if a couple completed their divorce prior to January 1, 2019, alimony will continue to be taxed as it was previously, with payments being tax-deductible for the payor and taxable for the recipient.
- Property and Asset Division: There are potential tax consequences when property is divided, such as capital gains taxes on the sale of a house and taxes on money withdrawn from retirement accounts. Spouses should also be sure to understand which party is allowed to take itemized deductions such as mortgage interest, property taxes, etc. If these and other financial issues are addressed ahead of time, tax liability can be minimized for both spouses.
Addressing tax consequences in a divorce is essential if you want to avoid financial setbacks after everything is finalized. At Mevorah & Giglio Law Offices, we have in-depth knowledge of divorce tax consequences and how they will affect your post-divorce finances. We offer flexible appointments on nights and weekends for your convenience. For a free consultation with one of our skilled and compassionate Illinois divorce attorneys, contact our office today at 630-932-9100.