Divorce Tax Planning
Divorce has many tax implications involving the division of property and debt distribution.
When a couple gets divorced, they are often too emotionally devastated to make certain arrangements. Nonetheless, several issues need to be resolved before or after a divorce is finalized. Physical and legal custody, for example, must be determined in order to protect the best interests of the child. While divorce elements such as tax planning and division of property might be the last thing on a divorcing couple’s minds, ignoring these important issues can have devastating consequences.
The knowledgeable Pittsburgh divorce lawyers at Pittsburgh Divorce & Family Law, LLC know how worrying these situations can be. Trust the skill and experience of attorney Anthony Piccirilli to help you plan for the tax changes that come with a divorce. He will meticulously work to ensure that property and funds are distributed in a way that does not negatively affect your finances.
Call (412) 471-5100 now to see how your finances can be fully protected.
How Taxes are Affected by Divorce
The question of how taxes are affected after a divorce is difficult to answer. The only way to fully understand how your financial situation will be altered after a divorce is by consulting with an experienced attorney. A lawyer can assist with the division of property and other assets so that you avoid a heavy tax burden. The most dramatic change in taxes after a divorce is your filing status. In most cases, married couples pay less in taxes and have access to far more tax breaks and credits. The change in your filing status affects a number of other elements, such as certain tax deductions and benefits. Depending on how money was earned by each spouse, getting a divorce can also impact your tax bracket as well as the tax amount that will be withheld from your paycheck.
When it comes to filing your taxes, a divorce could create several inconveniences. Any name change, stemming from a divorce or any other reason, must be reported to the Social Security Administration (SSA). You could face challenges in receiving your tax return if your identifying information is incorrect in the SSA database. If you move, you must fill out a Change of Address form with the IRS to avoid communication issues.
Planning for Taxes
Several steps can be taken to plan the tax implications of your divorce. The first and arguably most important element in planning for taxes after a marriage has ended is the division of property. While you may have been able to afford new and expensive items when you were married, paying for those things after a divorce can present a huge financial burden. It is much easier to pay certain expenses when two incomes are available. In addition, the cost of transferring property from one spouse to another must be considered. In most cases, the burden of paying the transfer tax falls on the person who is giving up the property. This is why it is critical to consider both the value and tax costs of an item.
Contact Pittsburgh Divorce & Family Law, LLC
If you are going through a divorce, you are likely worried about a number of issues. Maybe you are concerned about losing custody of your children, or perhaps you are hoping to end your marriage with your financial stability intact. Whatever the case, having the help of a skilled lawyer is essential. The Pittsburgh divorce lawyers at Pittsburgh Divorce & Family Law, LLC realize that going through a divorce can uproot everything in your life. From ruined relationships to a changed living situation, no area is left unaffected. Attorney Anthony Piccirilli can create arrangements related to taxes, property division, and custody on your behalf. He will work tirelessly to help your case reach a desirable outcome.
Call (412) 471-5100 today to avoid being taken advantage of.