Family Law | Tax Consequences of Pennsylvania Divorce

Contact a Norristown, PA Family Law Attorney Now at (215) 646-3980

The Martin Law Firm is a family law firm located in Blue Bell, PA serving residents of Montgomery County including Norristown, Ambler, Blue Bell, Lansdale, and King of Prussia.  The Martin Law Firm represents individuals throughout the divorce process including matters involving child custody, child support, alimony and spousal support, and distribution of marital property.

Tax Issues in Divorce

Parties to a Pennsylvania divorce may face several tax issues arising from the divorce. It is always important to consult with an experienced PA divorce lawyer to understand the full impact of PA divorce on taxes.  In general, the following tax areas can be affected:

1.  Alimony or spousal support is considered income to the receiving spouse.  Payments made by the payer spouse can be deducted by the payer spouse.  It is important to consider the taxes in any determination of adequate alimony or spousal support.

2.  Child support is not income and generally has no tax consequences.

3.  Property transferred between spouses at the time of a divorce typically has no income tax consequences.  Some exceptions to this general rule can include property that is transferred and is then used for a different purpose, e.g. a car once used for business purposes is not used for businesses purposes after the divorce.

4.  The custodial parent can claim child-care credit for the children.  The parents must determine which of them is entitled to claim tax exemptions for the children.

5.  When the divorce is final, the filing status of each filer will change.  The filing status for the year of a divorce is determined by the marital status on December 31st.  A filer will be considered single for the entire year for the year the divorce takes place, so parties to a divorce may want to time the final decree for the first part of a year if there are advantages to filing jointly for the last year of your marriage.

Family Law Attorney | Montgomery, PA

Contact the Martin Law Firm today at 215-646-3980 for a free consultation regarding divorce, child custody, alimony and spousal support, and distribution of marital property.  From our home office in Blue Bell, PA we represent all Montgomery County, PA residents including Norristown, Blue Bell, Ambler, Lansdale and King of Prussia.  Click here to return to our family law home page.

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