Attorney for Divorce Tax Issues In West Chicago, IL
Tax Strategies in Divorce Lawyer Serving Warrenville, Winfield, and DuPage County
Divorce is an emotionally trying time for spouses and their families. During the midst of the process, it is easy to overlook some of the financial implications of going from married to single. In particular, ending a marriage can have serious tax consequences. If these issues are not addressed ahead of time, they can lead to unpleasant surprises down the road. To ensure your financial interests are fully protected, it is important to work with a skilled attorney who thoroughly understands the tax implications of divorce.
At The Law Offices of Nancy Kasko, LLC, we have extensive knowledge of divorce and the tax implications of dissolving your marriage. Attorney Nancy Kasko has been through a divorce herself, and she has first-hand experience dealing with the financial issues involved. Nancy understands the major emotional and financial toll a divorce can take, and she works hard to make the legal process as smooth and stress-free as possible.
Nancy takes the time to listen and understand your unique circumstances, so she can provide the personalized representation you deserve. She provides a comprehensive review of your finances, so the tax implications of your divorce can be fully addressed ahead of time for optimal financial benefit. Nancy is honest and straightforward, giving you all the facts up front so you enter into the process with realistic expectations. Throughout the process, she provides ongoing updates on the progress of your case, so you are always kept informed.
Tax Implications of Divorce in Illinois
Divorce can impact your tax situation in several ways, including:
Spousal Support: Child support payments do not have any tax implications. Maintenance/spousal support, however, is tax-deductible for the payor and is considered taxable income for the recipient. If this is not accounted for in advance, it can lead to an unexpected financial burden at tax time.
In some cases, an unallocated support arrangement may be a viable option for both spouses. With this type of arrangement, the child support and spousal support are combined into one fully tax-deductible/taxable payment. This can be beneficial in cases wherein one spouse earns the vast majority of the income, such as with divorce and a stay-at-home parent.
Allocation of Parental Responsibility: Child custody arrangements have become more complicated in recent years. For example, many parents today retain joint custody of the children with nearly equal parenting time. If this is the case, the parties need to decide which parent will be able to claim the child(ren) as dependent(s) on their taxes.
Division of Assets: Certain types of property incur tax consequences when divided. Examples include taxes on the division of investment and retirement accounts, capital gains taxes on the sale of real estate, division of family-owned businesses, and many others. There is also the matter of which spouse is entitled to take itemized deductions on jointly-owned assets, such as mortgage interest and property tax deductions on a house you may own together.
Speak with a Strong Aurora, IL Divorce Lawyer
The tax implications of divorce can lead to serious financial hardships if they are not dealt with well in advance. Attorney Nancy Kasko has an in-depth understanding of these issues, and she works closely with you to develop a strong plan of action and ensure you emerge from your divorce in the best possible financial position. For a free consultation with attorney Kasko, contact our Warrenville law office today at 630-836-8540 or our Wheaton office at 630-407-1665. We serve clients in Wheaton, Warrenville, Winfield, and West Chicago, Illinois.