Divorce and Taxes: What you need to know

A divorce will surely impact your tax filing.  The following points are based on my 14 years of experience as a NJ divorce attorney.  You should consult with an accountant or qualified tax preparer to determine how to best prepare your returns.  If you were divorced at any time in 2012 you will need to file individual returns.  In doing so, make sure that if you have children they are claimed as dependents in accordance with your settlement agreement.  Alimony is the most significant area of change.  If you are receiving alimony you must declare it as income. There is a specific line item for declaring your alimony.  You will need to include the social security number of the payor.  This is critically important because the payor will certainly declare the support they are paying as deduction.  Cross-referencing the two social security numbers is an easy exercise for the IRS.

Many people do not know that the legal fees associated with the alimony aspect of your case may be deductible.  Again, please consult with a tax professional.  This can result in a significant deduction even for the party receiving alimony.  Contact your attorney to best determine how to quantify this potential deduction before it’s too late.

About Sandy Durst

Sandy Durst, Esq., is the founding partner of The Durst Firm where he heads the Family Law Department. Individuals facing a divorce benefit from the combination of legal skill, common sense and compassion that Sandy brings to each and every matter. Each case is given the personalized attention it deserves.
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