Divorce can be emotionally and financially taxing. In fact, when it comes to the financial impacts of divorce, understanding the various tax implications can be integral to protecting your interests and working toward favorable outcomes.
To clarify some of the tax issues that can arise in Arizona divorce cases, below, we have answered some of the most commonly asked questions about divorce and taxes in Arizona.
Q – If I’m Going Through a Divorce, Should My Ex and I File Joint Tax Returns?
A – If you and your ex are still legally married (i.e., not officially divorced) as of December 31st of a given year, then, filing joint tax returns is still an option for you and your ex. If, however, the divorce is finalized on or before December 31st of a given year, then jointly filing your tax returns with your ex is not an option.
Whether or not you should file jointly if you are eligible to is a consideration to work out with a lawyer, who can review your specific circumstances and advise you accordingly.
Q – Is Spousal Maintenance in Arizona Subject to Taxes?
A – Yes. While the party paying spousal maintenance in Arizona (i.e., the payer) can write off these payments as tax deductions, the recipient or beneficiary of these payments is generally required to report these payments as income, which is subject to taxes.
Q – What About Child Support?
A – Unlike spousal support payments, child support payments are generally not considered to be tax deductible or taxable income.
Q – Which Parent Gets to Use the Child Tax Exemption?
A – In general, the custodial parent (i.e., the parent who has primary custody over the child) will be the individual entitled to use the child tax exemption. It is important to note, however, that this exemption can:
- Be divided between both parents.
- Be transferred or given to the noncustodial parent (in which case an IRS form 8832 usually has to be completed).
Q – What Other Tax Issues Should I Be Aware of When It Comes to Divorce in Arizona?
A – Possibly a lot, as it depends on your circumstances, as well as possibly the issues in your divorce. If you are concerned about the tax implications of your impending or ongoing divorce, contact an experienced divorce lawyer – like Attorney Karen A. Schoenau – who can provide you with clear answers and straightforward advice.
Contact Scottsdale Divorce Attorney Karen A. Schoenau
For exceptional representation in an Arizona divorce case, you can rely on Scottsdale Divorce Attorney Karen Schoenau. Since 1987, Karen Schoenau has been committed to helping people resolve their important family law matters, including complex cases related to divorce, custody, paternity and other issues.
To receive professional advice and learn more about how we can help you, schedule an initial consultation with Attorney Karen Schoenau at the Law Office of Karen A. Schoenau. You can set up this meeting by calling 480-467-3435 or by emailing us using the drop-down contact form at the top of this page.