Dispute Resolution Services (DRS) : Topics to be Resolved : Tax Matters

Divorcing, separating and unmarried parents need to agree on which parent will claim the dependency exemption for each child. Their agreements will also affect head of household filing status, the child credit, and the child care credit.

There are additional tax considerations for divorcing and separating parties that may include the following:

• Income tax filing status
• Allocation of income and deductions
• Right to refunds not paid out
• Estimated quarterly payments
• Spousal maintenance payments
• Taxes and penalties on any retirement funds liquidated before, during or after a divorce
• Future capital gains tax liability

Our DRS professionals can, as appropriate and with the help of the parties’ attorneys, highlight potential liabilities, facilitate our clients’ agreements regarding tax matters, and, if appropriate, suggest the use of neutral accountants for information and recommendations.

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