Chicago Area Lawyers Informing Clients About The Tax Implications Of Divorce
When you are facing the reality of a divorce, you are likely to realize that the process will affect your family in many ways. Some will be emotional, while others will be practical and logistical. The financial implications of your divorce can be very serious, especially if you are not prepared.
At the law firm of Botti Marinaccio, LTD., our experienced divorce attorneys have the skill and legal knowledge to assist you with all aspects of the divorce process, including all associated tax concerns. Our team will work with you in developing a resolution that effectively addresses your tax obligations while ensuring you have the resources you need to move forward with your life.
Income Tax and Divorce in Northern Illinois
There are several factors related to your divorce that could affect your income tax obligations, as well as how you must file your income tax return. Based on when you filed for divorce and the complexity of your case, you might need to file an annual return while your case is in process. If your divorce has not been finalized yet and tax season is approaching, our lawyers will work with you in choosing your best option for filing. Depending on your circumstances, it might be in your best interest to file jointly with your spouse, while filing a separate return might be a better option in other situations. The same decision may need to be made again during the first tax season after your divorce is finalized.
At Botti Marinaccio, LTD., we understand that the arrangements that you and your spouse make regarding your parenting responsibilities are likely to affect your tax liabilities as well. For example, the parent with the majority of the parenting time will usually claim the couple’s children on their tax return following the divorce, but there are exceptions. Our attorneys are equipped to help you explore the options that could allow you and your spouse to both enjoy the tax benefits related to claiming your children.
Marital Asset Division, Spousal Support, And Taxes
The process of dividing marital property in a divorce can affect the tax obligations of each spouse. Such effects will vary based on the types and amounts of assets and debts involved. If you get to keep the family home, for example, your tax liabilities will almost certainly be affected by property taxes and income tax deductions based on mortgage interest paid. The same is likely to be true if your divorce forces you to refinance debts for your closely-held business. Dividing retirement savings could also have tax implications in the future as well.
Taxes can also play a role in the issue of spousal support. In light of recent changes to the U.S. tax code, maintenance payments are no longer tax-deductible for the spouse who pays nor are they are considered taxable income for the recipient. This places a higher tax burden on the paying spouse and may lead to more couples who are unable to reach an amicable agreement regarding maintenance.
Trusted Divorce Attorneys
The attorneys at Botti Marinaccio, LTD. have decades of divorce and family law experience, and we understand how divorce and tax obligations can affect each other. We also understand the importance of being patient and composed as we take the time to listen to you and to analyze your situation. From there, we will work closely with you in developing a strategy for managing your divorce and your tax liabilities. Our team will do everything we can to protect your rights, both at the negotiating table and at trial if necessary.