Creative Alternatives to the Courtroom

2018 Taxes & Divorce: There Is Still Time

If you are getting divorced or just got divorced the last thing on your mind is taxes. It is important to remember that if you got divorced anytime in 2018 (even Dec. 31,2018), you will be considered divorced for the whole year of 2018. What does that mean for taxes?

It could mean a higher tax bill than you thought.  

If you are receiving alimony this year it will be taxable to you.  If you are paying alimony this year it will be deductible to you.

  • Who is claiming the children?  

  • Who is getting the child tax credit?

  • Who is taking the interest deduction and real estate tax on the marital home?

All of these items need to be thought about because they all have an impact on your 2018 taxes that you will file in early 2019.

"By talking through the changes in the new tax law with a savvy divorce financial professional, such as a CDFA, couples can better understand what the tax laws mean for their planned settlements and their family's future."

There is still time to do some tax planning before the end of the year.