We are divorce attorneys, not tax experts, but marriage and finances are so intertwined that inevitably divorce and taxes do intersect. Each year as the IRS tax return filing deadline approaches, we are increasingly confronted by our clients with tax preparation questions. For specific tax inquiries, we advise that you…
According to section 215 of the Internal Revenue Code, spousal support (otherwise known as alimony) is generally taxable income to the payee and tax deductible to the payor. However, if payors aren’t careful, they may inadvertently agree to support arrangements that are not deductible. Retroactive Support In California, the Court…
It’s that time of year again…tax time! It’s a time of gathering all of your financial documents and keeping your fingers crossed that you will get a big refund in the mail rather than having to pay Uncle Sam more money out of your pocket. Whether you got divorced or…
By now, it’s likely that you’ve heard the H&R Block commercials or you are at least aware of their well-advertised “Get Your Billion Back America” campaign. H&R Block, like many other tax service companies, is clearly committed to pushing for consumers to use their services so they can help them…
In California divorce cases parties often overlook the tax treatment of their proposed actions when negotiating settlement agreements. A husband might say, “I will pay you more spousal support than child support because our child is turning eighteen (18) soon and child support will terminate.” A wife might say, “I…
During this time of year many people get motivated to clean out their closets and clean up their finances. If you are considering pursuing a divorce this year, you will also want to consider using some of that “spring cleaning” energy to prepare for the changes to come. There are…
The Defense of Marriage Act (DOMA) was enacted on September 21, 1996 and permitted the states to refuse to recognize same-sex marriages legally entered into in other states. This means that under DOMA, if a same-sex couple who legally married in Hawaii moved to California, California would not be required…
With Tax Day (April 15th) near approaching, both CPAs and divorce attorneys alike are likely receiving an influx phone calls from clients regarding the tax implications of spousal support, often referred to as alimony. Generally, spousal support is considered to be tax-deductible to the spouse who is paying the support.…