Figuring out the financial aspect of a New York divorce can be challenging even in the most amicable of divorce proceedings. Part of the financial aspect involves taxes. Here are some tips for handling taxes after getting divorced.
Guidance for filing taxes after divorce
Once the divorce occurs, only one may claim their shared child as his or her dependent when filing taxes each year. A spouse can do this if the child resides with him or her more frequently than the child does with the other party, in which case the spouse is considered the custodial parent. Custodial parents can qualify as heads of household and claim multiple tax benefits, such as the federal government’s dependent and child care credit and Earned Income Tax Credit.
When it comes to spousal support payments, the person making these payments cannot deduct them. In addition, the recipient of the payments is not required to pay taxes on them. This is also true for child support payments.
How an attorney can help with divorce
Hiring a family law attorney at the first opportunity is a smart move for an individual contemplating divorce in New York. An attorney can help the individual pursue his or her fair share of assets. Sometimes this happens as part of the litigation process; other times it occurs through direct negotiation with the attorneys or via mediation. The attorney can also advise the individual on how to handle child custody, spousal support and child support matters. The lawyer will ensure the client’s rights and best interests are safeguarded during each step of the divorce proceeding.