There are numerous aspects of the divorce process, including dividing assets and making custody arrangements when applicable. The financial side of divorce is something about which many people do not have a firm understanding. Getting a divorce in Georgia can be costly, but the finances go beyond solely that fact. Taxes after and during a divorce are another important factor to consider.
The parent who has the children for the larger portion of the year has the opportunity to claim them for income tax purposes. Furthermore, the parent who covers the medical expenses of the children typically has the right to claim those for tax purposes. If a couple was legally married for all of last year, they can still file joint taxes this year — even if the divorce is finalized before the tax filing date. If this is not the case, the parent with primary custody of the children can file as the single head of house.
The parent who pays child support also pays the taxes on any income generated to pay that obligation. The spouse who receives any alimony is responsible for paying income taxes on the amount received. Mortgage interest deductions are given to the party that retains ownership of the house. If both parties own the property, then the deduction is typically divided between the two.
The finances involved with a divorce process are complicated and often confusing, from child support to alimony. Taxes and other financial aspects involved in divorce may seem daunting. However, having an understanding of the divorce process in Georgia and receiving assistance from an experienced family law attorney can greatly ease any stress and be helpful in achieving a fair and comprehensive settlement.
Source: Forbes, “Getting Divorced? 8 Things You Must Know About Taxes“, Emma Johnson, Jan. 19, 2015