Two tax issues frequently need to be addressed in divorce: One, if there are qualifying children, which parent gets to claim the children as dependents? Two, which parent may be entitled to claim Head of Household filing status. The following is a general discussion of the rules. Dependency Exemptions The IRS rules provide that the “custodial parent” is the parent entitled … [Read more...] about Tax Filing Issues in Divorce
When divorcing couples are discussing spousal support in California, they need to be aware of the tax implications of their divorce. Federal laws enacted by congress and enforced by the Internal Revenue Service (IRS) are different than laws enforced by the California Franchise Tax Board (FTB). Spousal Support and Taxes IRS rules. Under federal law, a person paying spousal support may … [Read more...] about Tax Issues in a California Divorce
When people divorce, how to deal with money and taxes can be two of the most contentious topics of discussion. One of the advantages of the Collaborative Divorce process is the opportunity to work with a neutral financial professional who helps spouses look at the financial big picture as they work to reach agreement. Couples want to know how to allocate the family finances in a way that … [Read more...] about What Do You Need to Know About Divorce, Money and Taxes?