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SPECIAL
DIVORCE FACTS YOU
SHOULD KNOW
 1.
If spousal support is paid to one party by Court Order or written Agreement,
such amounts are taxable income to the recipient and the amount of such
payments are deductible for tax purposes from the income of the paying
party.
2.
It is generally desirable for the parties to agree in advance
as to who will claim the dependency exemption of the minor children
for tax purposes. Under existing law, the primary custodial parent
is entitled to claim all children in his or her custody as lawful
dependents for tax purposes, regardless of the amount of child
support paid by the other party. The parties are still free to
allocate the dependency exemptions differently, if they choose
to do so. You should seek the advice of your accountant as to
specific details concerning tax returns.
3.
Each party must keep a record of all support payments made or received,
as the case may be, including the date and amount of each payment. In
the event of a dispute, those records are indispensable.
4.
If you have not received a Judgment dissolving your marriage before the
end of the year, you may file an individual tax return (married, filing
separately), or a joint tax return with your spouse. You should consult
with your accountant as to the advantages of these alternatives.
5.
Certain portions of the fees paid to attorneys and/or accountants may
be deductible for Federal and State income tax purposes. Clients should
certainly ask for advice on such deductibility when preparing annual tax
returns.
6.
You may obtain from your local IRS Office special information booklets
regarding: "Tax Information for Divorced Individuals" or contact
http://www.irs.ustreas.gov/plain/search/site_tree.html
For more information contact
Lawyer@CalAttorney.com.
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