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Geneva, Illinois Divorce Attorneys for Tax Issues

Experienced Divorce Lawyers Addressing Taxes and Financial Concerns in Geneva, IL

Tax issues in divorce can be extremely complex. As such, it is very important to hire a dedicated divorce attorney who can assist with your case. When you work with a lawyer at Serrano Hanson & Hurtado, LLC, you will have an advocate on your side who is dedicated to assisting family law clients throughout Kane County. Our attorneys provide professional service to every client we represent, and we take a highly individualized approach to suit your needs.

When you file for divorce, you are likely to have many questions about how the proceedings will affect your tax situation. You should always speak with an experienced family lawyer before making any decisions.

Common Questions About Tax Issues in Divorce Cases

What kinds of tax questions tend to arise when spouses decide to file for divorce? For instance, should you file as "married filing jointly" or "married filing separately" when you file your taxes? Generally speaking, until your divorce is finalized, you will still be able to file taxes together with your spouse, but it is important to think about whether filing separately may be more beneficial than filing jointly. You should discuss your concerns with a responsible divorce lawyer at Serrano Hanson & Hurtado, LLC.

In short, filing for divorce can have an enormous tax impact for many different matters, including but not limited to:

For example, many people who file for divorce have questions about how paying or receiving maintenance can have an effect on their tax situation. Generally speaking, money received for spousal maintenance will not be considered taxable income for the payee spouse, and the payor spouse will not be able to deduct payments for spousal maintenance.

Child support is treated the same as spousal support. The child support payments a parent receives are not considered to be taxable income, and they are not deductible for the payor spouse. In addition to questions concerning support payments, tax issues also arise when parents want to claim a dependency exemption for their children. A child can only be claimed as a dependent by one parent, and determining how these exemptions will be allocated is likely to be an important issue addressed in a divorce settlement. This can be a complicated issue, and you should always discuss child custody and taxes with your divorce lawyer.

Depending on the tax implications of certain types of assets, particularly in high net worth divorces, property distribution can end up seeming unfair in certain cases. You should think carefully about the taxes associated with various accounts and investments when considering the value of such property. Your attorney can help you to think through numerous tax matters in a high asset divorce.

Taxes on Marital Businesses

When considering what to do with a marital business during divorce proceedings, you should be aware of the financial ramifications. Selling the business might open you up to capital gains taxes. This could potentially be circumvented through a transfer of assets between spouses within a year of the dissolution of the marriage, since these transfers are not taxed. You may also end up paying capital gains for the sale of certain investments, such as real estate and stocks. A seasoned divorce attorney can advise you of your best options in these situations, keeping you informed of any assets that might be taxed in a high net worth divorce.

Contact a Dedicated Geneva Divorce Lawyer for Tax Concerns

Divorce can raise many questions about financial assets and taxes. Whether you have questions about the tax implications of property distribution or your rights when it comes to a dependency exemption, an experienced attorney can assist you today. Contact Serrano Hanson & Hurtado, LLC at 630-844-8781 to set up a consultation and learn more about how we can help. We serve clients throughout Kane County, DuPage County, Kendall County, and DeKalb County.

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