Taxes & Divorce: What You Need to Know

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Divorce is a highly-involved process; it addresses child custodychild support, property and debt division, and selling or dividing marital assets, such as the family home and vacation properties. If you’re getting a divorce, you have a lot of things to take care of. Taxes may not be one of your main concerns, but that doesn’t mean they should be ignored during the divorce process.

When you get a divorce, it affects your taxes in more ways than one. For this reason, it’s important to take taxes into consideration while you’re negotiating a divorce settlement. Read on to learn how divorce affects a person’s taxes:

1. Child Support. Are you going to be paying child support? If so, you cannot deduct your child support payments. Likewise, custodial parents do not count child support as income.

2. Paying Spousal Maintenance. While paying spouses cannot deduct child support, that is not the case with spousal maintenance. If a spouse pays spousal maintenance, he or she can deduct it on their annual tax return – that is a plus for higher-earning spouses. However, spousal maintenance can ONLY be deducted if it is included in the divorce decree. For example, if you give your former spouse cash to help get back on their feet but it wasn’t included in the divorce decree, you cannot deduct those cash payments made to your former spouse.

3. Receiving Spousal Maintenance. Spousal maintenance is tax deductible for the paying spouse, but it is also counted as “taxable income” for the receiving spouse. If you are to receive spousal maintenance, you may want to take steps to avoid paying a penalty. To do this, you can increase the tax withheld from your paycheck or you can make estimated tax payments.

4. Contributing to Your Spouse’s IRA. If you contributed to your spouse’s IRA in the same year you obtained a divorce, you cannot deduct those contributions. On the other hand, if you made contributions to your IRA, those contributions may be deductible.

5. Changing Your Name After the Divorce. After the divorce, you may want to go back to your maiden name. If you decide to change your name for any reason, don’t forget to notify the Social Security Administration and apply for a new Social Security card. Essentially, if the name on your tax return is different than the one on the SSA’s records and you have a tax refund due, it can be delayed until you get a new Social Security card.

To learn more about how divorce affects taxes, reach out to Jones Law Firm, P.C. to schedule a free case evaluation. We are here to help!

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Client Testimonials

Compassionate & Effective Counsel That Makes a Difference

B.H.

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April and staff were wonderful.

“April and staff were wonderful. It made a difficult time of life softer while maintaining my dignity.”

J.A.

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I will be recommending friends, family, and associates to Jones Law.

“When I needed legal assistance I emailed roughly a dozen law firms that came up in a Google search. Jones Law was the only firm that got back to me with a personalized message about my particular situation. When I arrived for my appointment I was greeted by Emily Sturgill to go over my case. Emily was awesome. She walked through my information & was very empathetic to my situation. I later met with David Collins to address my issue. David was great & completely understood what I wanted & gave me a very quick resolution. I will be recommending friends, family, and associates to Jones Law.”

M.C.

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April always valued how I felt and what I wanted the outcome to be for the case.

“April Jones has represented me very well in my family court case. April always valued how I felt and what I wanted the outcome to be for the case. She understood my concerns and made sure they were kept on the forefront. I feel my cases outcome was positive for me and my family because of that. Thank you.”

S.H.

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We can now open up another chapter of our lives.

“I went to Jones Law Firm, PC , needing help with my children’s custody case. April took my case, even though it was very short notice before the court date. Immediately April and all her staff members started gathering all the details and information from me to prepare for court. Daily April and/or her staff members were in contact with me for any updates on what was going on. I now have full custody of my two beautiful children. My family and I would like to say “Thank you so much” to everyone at the Jones Law Firm. We can now open up another chapter of our lives.”

A.E.

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In the most difficult time of my life, April Jones was there for our family.

“I am SO thankful for April and her team! She personally went well above and beyond the call of duty on my custody and child support case and helped me out of a nightmare situation with my ex-wife and restored balance and fairness in my family. I am happy, and most importantly the kiddos are happy!! Thank you SO much April for all you do!”

S.R.

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“April and her team made my divorce quick and smooth. I would recommend them to any one. Even after my case if I need to call in for anything the team there are always so nice and helpful. I would not be in the life I have now if it weren’t for the help I got from this firm.”

S.C.

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Not only did she do a FANTASTIC professional job, she was caring, understanding and most concerned in a manner that left me knowing and feeling I was safe!

“Having had the pleasure and experience of having Ms. April Jones of Jones Law Firm, PC represent me in my recent divorce, I must say how truly BLESSED I was. Not only did she do a FANTASTIC professional job, she was caring, understanding and most concerned in a manner that left me knowing and feeling I was safe! In the aftermath (or dare I say ‘afterglow’!) of such an emotional separation departure, I graciously and honestly can suggest and recommend Jones Law Firm, PC !”

M.K.

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Ms. Jones’ best quality as an attorney is her ability to take charge.

“Ms. Jones was my attorney in 2002. She is sharp, quick and strong and we won my case decisively. I am currently having Ms. Jones represent me again on another issue in 2010-2011. Based on my observation, Ms. Jones is sharper and stronger and has attained greater knowledge and insight. I have noticed that Ms. Jones desires to win each case with integrity. She cares about her client’s welfare at all times. Ms. Jones’ best quality as an attorney is her ability to take charge. I have recommended Ms. Jones to my friends and co-workers.”

Roswell

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April settled my case literally out in the courthouse hallway.

“April settled my case literally out in the courthouse hallway.I had a landlord that failed to make promised repairs to my apartment. I was paying for a two bedroom,two bathroom place but only one bathroom worked. He said he would repair it when I moved in but 7 months went by and he was still making excuses. He lived in hawaii, the apartment was in california and he used that as his excuse. I decided to stop paying him until he fixed the bathroom I had BEEN paying for. After 3 months of that he arrived at my apartment and decided to take me to court rather than fix the bathroom and collect back rent which I had been holding onto. April negotiated a deal before we went into court for an immediate cash payment for 1 month and I could take a week to move out. My landlord accepted and a possible unlawful detainer ruling was avoided. I was able to use the 2 months rent I still had to find another apartment which would have been much harder to do with a unlawful detainer on my record.”

Alan

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April is very knowledgeable of the law and will not let you down.

“I cannot be more happy with the April Jones Law Firm! I hired her in 2012 for disputes over child support and other items, we had to go to court 3 times on separate matters and every time we were successful. April is very knowledgeable of the law and will not let you down. If I ever need a family law attorney I will call April Jones.”

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