Divorce can have a major impact on the finances of the separating parties. Most divorcing spouses understand that the process itself can be expensive, and then there is child support, alimony and other expenses related to divorce that have to be taken into account. One’s tax situation is another thing of which those individuals going through divorce should be aware. Georgia parties working through this process can seek the aid of family lawyers who can provide guidance along the way.
If one’s divorce is finalized prior to December 31, then both parties will have to file taxes as unmarried individuals. However, if the divorce is finalized after that date, the two parties will file as a married couple for that year, even if the divorce is finalized prior to their taxes being completed. Parents that have gone through the divorce process and are filing separately can then sort out who will get which tax breaks that are attributed to the children.
After the divorce has been finalized, the individuals will need to consider the effects that alimony and child support payments may have on their taxes. Those receiving alimony will have to account for it as a source of income, while those paying alimony may be eligible for a deduction. On the other hand, child support payments do not have an impact on one’s taxes. As two parties work through a divorce, another aspect to consider is the 401k plans of either or both individuals.
Those in the field of family law can assist individuals through the divorce process as they sort out property division and child custody arrangements. These legal professionals can also help those in Georgia determine how these life changes will affect them financially, including any impact they may have on their finances. With the guidance of these lawyers, the divorce process can go more smoothly and create less stress for those involved.
Source: host.madison.com, “Here’s How Your Taxes Changed if You Just Got Divorced“, Dan Caplinger, March 2, 2017