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Tax Implications in Divorce

Our Fort Collins divorce attorneys can explain how Colorado law applies to the facts and circumstances of their case, including some of the tax issues they will face. If you require tax advice you should seek such from a tax attorney or whoever you reply upon for such as we only practice in family law and do not advise as to issues that require a legal opinion on any tax issue.

If you are going through a divorce you marriage status as of December 31st determines you and your spouse’s eligibility to either file jointly or married separate if you are still married. If your divorce is complete on December 31st or earlier than neither you nor your former spouse may file jointly (unless remarried).

Common Tax Implications of Divorce, Maintenance and Child Support

Maintenance, more commonly known as alimony is tax deductible for the party paying and it is treated as taxable income to the party receiving maintenance.

Child support is not tax deductible, so the party paying child support will not receive a tax break and the one receiving the child support will not incur any taxes.

Dependency exemptions for minor children shall be allocated between the parents in relation to their income. When one parent earns $60K a year and the other earns $40K per year then the dependence exemptions should allocated 60% to the one earning %60K and 50% to the one earning %40K. In Colorado if the parent paying child support is not current at the end of the year they may not claim the dependency exemption.

Head of household status is available to parents who are not married and pay for more than 50% of keeping up the home. Filing as head of household may allow for a higher deduction than the standard one and thereby save you money.

Tax deductions are available for those going through a divorce. While attorney’s fees associated with your divorce are not tax deductible some of the costs may be eligible, such as: tax advice, fees paid for appraisals, actuaries and accountants in connection with maintenance / alimony.

401K penalty-free withdraw is available if you are required by a court order to pay maintenance or child support to your former spouse or dependent child.

If you want to learn more about Divorce or Child Custody the contact us today and schedule a time to discuss your case and concerns with one of our Fort Collins divorce attorneys today.


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Fort Collins Divorce & Child Support Attorneys

Tom Cossitt

Tom Cossitt, Esq.

Family Law
Suzanne Ewy

Suzanne Ewy, Esq.

Family Law
Carla Jaquess

Carla Jaquess, Esq.

Family Law
Attorney Lisa Vigil

Lisa Vigil, Esq.

Family Law
Jenna Hardesty

Jenna Hardesty, Paralegal

Family Law

Testimonials

  • "I am very appreciative of Toms services. English is a second language to me, and this process seemed difficult because of that barrier. He was very patient and thorough making sure I understood everything before he proceeded. I will recommend him to everyone! He truly cares about you, as does his wonderful, helpful team"

    Abigail
    Review from AVVO

  • "I had a very challenging case, one that could have had indefinite financial consequences. Tom Cossitt evaluated my case and identified several strategies for moving forward. I chose one and Tom developed and implemented that strategy with speed and with the utmost in professionalism. The documents he drafted on my behalf, based on extensive research and case law / precedent were thorough and comprehensive. When the Court ruled, it used the arguments as developed by Tom Cossitt verbatim in its decision, and the case was decided in my favor. Needless to say, I was pleased beyond words. Based on my experience and the outcome of my case, I would highly recommend Tom Cossitt to anyone requiring the services of a family law attorney."

    Dan
    Review from Google

  • "I met with as many as 10 different attorneys before coming across Thomas. After our initial consultation, I was very pleased with his knowledge and realistic expectations. During the really tough time, Thomas kept me calm and helped tremendously to get custody of my daughter. He kept me informed on what was going on and would ask for my input; if it was something that was unrealistic or could be done a different way, Thomas would tell me right away. During the hearings, he was amazing. He kept a professional attitude and was great at cross examinations. He took in all of the facts and evidence, and was able to present them efficiently and effectively. Ultimately helping me gain custody of my child."

    Mitchell
    Review from AVVO

The Cossitt Difference: Fort Collins Divorce Attorneys That Care

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