Tax Issues Related to Divorce

divorce.png

If you're separated or divorced, it's important for you to become familiar with certain tax issues. Familiarity with the tax consequences of your financial and personal decisions might cause you to alter your plans in some areas. You should be aware of the tax impact of your filing status, and you should know how a married couple's income and expenses may be divided for tax purposes. You should also be aware of the tax treatment of pensions, alimony, and child support, and you should know the significance of claiming a child as a dependent. Additionally, the tax treatment of property settlements and the redemption of a spouse's stock in a family business should be understood, as should the use of trusts and escrow accounts in divorce proceedings.


Complete Article