Bucks County Matrimonial Taxation Attorney
When most people think of the issues they must consider when negotiating a divorce, they think of property distribution, spousal support, alimony, and child support. But few people consider the matrimonial tax implications of a Bucks County divorce. Regardless of the size of the marital estate and individual incomes, there can be serious taxation implications that you must consider throughout the divorce process. At Kardos, Rickles & Hand our Bucks County matrimonial taxation attorneys in Newtown are prepared to assist with all tax issues that may arise during your divorce case. To learn more, call or contact our office today.
Dividing assets, liabilities, and real estate can create the largest tax liabilities in a divorce settlement. Transferring real estate, dividing business interests, retirement accounts, and pension withdrawals can all have substantial tax implications for a spouse after the divorce. While many spouses want the house in a divorce, few think about whether they can afford the property taxes by themselves the following year. In addition, the IRS can assess substantial penalties up to ten percent on withdrawals made early from a retirement account if not done properly through the courts. Our team is prepared to evaluate all potential tax implications of your property settlement agreement.
Federal tax law changes in recent years have substantially impacted spousal support and alimony discussions for Pennsylvania divorce cases. Prior to the legal changes, the spouse paying alimony could deduct it from their taxes, and the spouse receiving the support had to claim it. Under the new law, the spouse paying support no longer gets to deduct that amount from their income taxes, and the spouse receiving support no longer has to claim it. As such, higher-earning spouses are now much less willing to pay alimony after a divorce. Our team can work with you to determine whether alimony is the best option or if another option like an altered property distribution settlement may have better tax implications in your divorce.
The final area of potential tax concern involves child support payments. Child support cannot be deducted from the taxes of the parent that is paying support. However, the determination of each parent’s income for the purposes of taxes could have an impact on the amount of child support paid by the noncustodial parent to the custodial parent in your case. Kardos, Rickles & Hand is prepared to assess your case to ensure that you are not paying too much, or receiving too little, in child support payments due to mistakes in the income and tax calculations.
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The impacts of taxes on your divorce settlement can be far more substantial than most people realize. Would you or someone that you know like to speak with a knowledgeable Pennsylvania divorce attorney about the tax implications of your divorce settlement? If so, call the office or contact us today at Kardos, Rickles & Hand to schedule an appointment with one of our lawyers now to review your case.