For all but the most affluent Virginia families, divorce means financial strain. After all, you are dividing a single household into two households, each with separate expenses but without any corresponding increase in income.
However, a solid understanding of the tax consequences of your divorce settlement can relieve some of this financial strain and even improve your bargaining position. At MacDowell Law Group, P.C., our divorce attorneys can ensure that all tax aspects are identified and fully considered.
Tax Issues to Keep in Mind
Tax considerations can affect your divorce settlement strategy in a variety of ways. For example, child support payments are currently not deductible to the payer, but spousal maintenance, or alimony, payments are. Alimony is, however, considered taxable income to the recipient. With this in mind, it makes sense to consider the tax consequences of a given payment.
If a high-earner is willing to pay higher alimony in exchange for a somewhat lower child support obligation, the collecting spouse in a lower tax bracket might find it desirable to compromise on a higher child support demand. Also, an assignment of the tax deduction for a child to the paying parent may be a strategy to employ in order to garner a higher child support payment. This is just one example of what might assist you in reaching a settlement to achieve your objectives.
Do You Need To Speak To A Virginia Divorce Attorney?
If you are considering divorce you need to speak with an experienced Virginia divorce attorney as soon as possible. Please contact us online or call our Fairfax, Virginia law office at 703.277.2811 to schedule your free consultation.