Taxes Archives - Triangle Divorce Lawyers

Category Archives for "Taxes"

What to do When you Suspect Your Spouse is Concealing Marital Assets from You

By Steven Fultonberg CPA/CVA

No one likes to imagine that someone is purposely deceiving them or hiding information from them, especially if such actions involve concealing assets in a marriage. If your spouse is becoming more secretive, erasing trails of certain shared finances and concealing marital assets, it could be a sign that that they are preparing for a pending separation or divorce. Such actions are unethical and potentially illegal. Whether or not you believe your spouse is capable of such wrongdoings, consider the chance that they are doing such and take a proactive approach to getting a definitive answer.

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Dealing with taxes after divorce

Residents of North Carolina who have gone through a divorce may need to adjust their approaches to filing their taxes. Most importantly, a divorced party will file as single, which means that records must be kept separately for use in the process of preparing a tax return. Additionally, it is important to be sure that one’s Social Security number is not being used by an ex-spouse for their return.

A divorce settlement that involves alimony or child support could carry tax implications for either party. For example, the individual paying alimony is able to deduct those amounts, and the recipient will need to report these funds as income. Child support, on the other hand, is not deductible to the paying party and is not income for the recipient. An individual who owes support but falls behind on payments could face problems with collecting an income tax refund as these funds could be intercepted to satisfy outstanding obligations. Legal fees related to divorce are typically not deductible, but legal fees paid to get help in handling divorce-related tax matters could be.

Additional issues that could arise during divorce proceedings include the ability to claim a child on a tax return. In some cases, parents’ returns won’t be helped by claiming a child, which may allow the other party to make the claim instead. If both parents could benefit, however, then a divorce settlement might provide for a rotating schedule allowing parents to take turns in claiming a child.

During divorce proceedings, a parent might be focused strictly on the imminent issues of finances and custody. However, a lawyer may address matters such as rights and responsibilities related to income taxes and other situations to ensure that these factors are considered during settlement negotiations.