During a divorce, there are a number of issues that need to be agreed upon by the two spouses. One of the biggest issues that will need to be resolved is the financial component of a divorce agreement. People often know that there will be some financial implications when going through a divorce. What they may not know is that a divorce can also affect their taxes. Both taxes and divorce are complicated topics. As with all complex subjects, a lot of questions often arise when determining how a divorce agreement impacts someone’s taxes. These are three of the most common tax issues that could arise during or after a divorce is finalized. Alimony If a spouse is ordered to pay alimony, those payments may be tax deductible. In order for the alimony to be eligible for a tax deduction, it must meet the following seven criteria established by the … Continue reading Understanding the potential income tax implications of divorce
