How Divorce Impacts Your Taxes: What Divorcing Couples In Fort Lauderdale Need to Know This Tax Season
Going through a divorce in Fort Lauderdale is already stressful. Unfortunately, tax season can make it even more complex. From filing status changes to claiming dependents, understanding how a Broward County divorce impacts your taxes is crucial to avoiding penalties and maximizing deductions. Our Florida divorce lawyer explains what you need to know to navigate this tax season with confidence.
Key Tax Changes Due To A Fort Lauderdale Divorce
Divorce impacts multiple aspects of your tax return, and failing to plan ahead could lead to unexpected liabilities. The Internal Revenue Service (IRS) warns the most significant changes include:
- Your filing status: If your divorce was not finalized by December 31, 2024, you may still file jointly this year. Otherwise, you must file as Single or Head of Household.
- Claiming dependents: Generally, the primary caregiver claims children on their tax return. This can be negotiated as part of a divorce settlement, allowing parents to claim dependents on alternate years.
- Alimony payments: For couples who divorced before January 1, 2019, alimony payments are deductible for the payer and taxable for the recipient. If you divorced after this date, alimony is not tax-deductible or considered taxable income.
- Division of marital property and assets: Transfers of assets during divorce, such as property or retirement funds, may have significant tax consequences, potentially costing you money.
Failing to understand divorce-related changes when doing your 2024 taxes could cost you money or lead to penalties. To protect yourself, consult an experienced Fort Lauderdale divorce lawyer and a tax professional.
Tax Tips for Divorcing Couples
Mistakes and errors made when filing your taxes after a Fort Lauderdale divorce can result in heavy fines and penalty charges. To avoid unpleasant surprises after submitting a return, follow these tips for the 2025 tax season.
- Update Your W-4: Your tax withholding may need adjustments to prevent underpayment or overpayment after a divorce.
- Determine who takes the Child Tax Credit: This credit can significantly reduce your tax bill, but only one parent can claim it. Address this issue in any settlements or final divorce orders.
- Review retirement account tax implications: If you receive a portion of a spouse’s 401(k) or IRA, you will need a qualified domestic relations order (QDRO) and should consider rolling the money over to avoid early withdrawal penalties.
- Document alimony and support payments: Keep detailed records of payments made or received for potential future tax questions.
Contact Our Experienced Fort Lauderdale Divorce Lawyer
Getting a divorce in Fort Lauderdale involves many life changes, including how you handle your taxes. The key to avoiding costly mistakes is being informed and planning ahead. The law office of Vanessa L. Prieto provides the knowledgeable legal guidance you need to protect your rights throughout the divorce process and can address tax issues as part of a divorce settlement.
If you have questions about alimony, asset division, or other divorce-related matters and potential tax implications, we’re here to help. Contact our experienced Fort Lauderdale divorce lawyer today to request a consultation.
Sources:
irs.gov/individuals/filing-taxes-after-divorce-or-separation
browardclerk.org/Divisions/Family
