James Flaherty and Pamela Magnano Blog for Flaherty Legal Group: Divorce and Taxes

There are many issues to consider when negotiating a divorce agreement, but most people do not consider all of the implications a divorce can have on your taxes. When preparing to enter into a divorce agreement, you should consider whether certain exemptions/deductions should be addressed in your divorce agreement. Parents should have an agreement on who claims the children for the dependency exemption. Additionally, you should speak to your accountant about the IRS rules regarding claiming the child care credit and the child tax credit. In addition, if you own a home, your agreement should be clear on who gets to claim the taxes and interest associated with this ownership.

When analyzing whether or not an agreement is in your best interest, it is important to not only know your weekly disposable income but also what you can expect when tax season approaches. We encourage our clients to work with their accountants and our attorneys to maximize the benefits that they may receive when filing their taxes. At Flaherty Legal Group, LLC we believe it is important to consult professionals that can assist us and you in making the best decisions.