Taxes and Divorce in Illinois

 Posted on October 06, 2016 in Divorce

If you are going through divorce proceedings or considering initiating a divorce, you may have questions about how getting divorced in Illinois may affect your tax liability, especially if tax season is nearing. Dealing with taxes in the midst of a divorce can be problematic and fraught with emotion, and the process becomes even more complex when the taxes themselves are complicated.

Going through a divorce is stressful enough, and worrying about how the divorce may affect your taxes should not be something you need to handle alone. No matter what your tax situation looks like, an experienced Illinois divorce attorney in DuPage County can help make sure your rights are protected and that your tax obligations are met.

Common Tax Issues That May Arise During an Illinois Divorce

There are several issues that may affect a person's tax liabilities when he or she is going through a divorce or has recently finalized a divorce. Some of the most common matters that arise include questions about:

• Working amicably with your spouse or ex-spouse to plan how the tax returns will be filed;
• Filing as married jointly or separately, or unmarried;
• Considering delaying finalizing the divorce in order to file one final joint tax return;
• Who will claim the children as dependents;
• How child support obligations may impact dependent exemptions;
• Splitting exemptions when there are an odd number of children;
• Which parties may claim which deductions;
• Determining how and whether a tax return will be split;
• Including any alimony payments in gross income on tax returns;
• Deciding which party owes what portion of taxes due to be paid;
• What to do if either party was not a resident of Illinois during the tax period, or you lived apart all year and shared no income;
• How a shared business or partnership factors into tax liability after divorce;
• Whether you can deduct legal fees associated with tax advice related to your divorce; and
• Indemnification protections if your spouse engages in any misconduct or false statements.

Consult an Experienced Family Law Attorney in DuPage County

Our family law attorneys are experienced in working with divorcing couples who have complicated tax issues. We regularly consult with financial and tax professionals - such as appraisers, actuaries, and accountants - who can advise regarding even the most complex tax matters.

Whether you believe your taxes may become a sticking point in your divorce, or you simply want to plan ahead to prevent any hang-ups when it comes to filing your taxes during or after your divorce, do not hesitate to consult with one of our experienced DuPage County divorce attorneys.

Source:

https://www.irs.gov/publications/p504/ar02.html#en_US_2015_publink1000176072