Find Mediators Near You:

Stocking Stuffer!

From the Real Divorce Mediation Blog of Nancy Hudgins and Debra Synovec

Fill your stocking by doing tax planning! Yes, tax planning may give divorcing couples more holiday dollars!

Holidays are a busy, stressful time of the year whether you are in the process of getting divorced or not….so why add stress by bringing up taxes? Because taking a little time to do tax planning may save you substantial tax dollars!
Some issues to consider are:
Tax filing status. Married couples usually file a joint tax return. It might be better to be divorced by the end of the year so you can file as a single person or head of household, depending on your status. Or, even if you are still married at the end of the year, you might be better off filing separately or, if you qualify, filing as head of household.
Children. Most of us are familiar with the Dependent Exemption, but there are many other credits available for your children that can reduce your tax bill, including the Earned Income Tax Credit, Child and Dependent Care Credit, Hope Scholarship Credit, Lifetime Learning Credit.
Spousal maintenance or alimony. If properly structured, it is deductible by the person paying and is taxable income to the person receiving. On the other hand, child support is neither taxable nor deductible.
Property settlement. Usually there are no immediate tax consequences to a divorcing couple’s property settlement agreement. However, there may be significant tax consequences down the line. Divorcing couples should consider the tax consequences that occur in the years ahead when they are determining the distribution of assets and debts so that there are no unexpected surprises.
A couple getting divorced can save substantial dollars by doing tax planning…….seek some tax advice and look at the total picture….it pays to plan together so both benefit.

                        author

Debra Synovec

Debra Synovec, a Seattle-based mediator and lawyer, has mediated divorces for 20 years. She believes in empowering the parties to reach their own resolution. MORE >

                        author

Nancy Hudgins

Nancy Hudgins, a San Francisco mediator and lawyer, began specializing in civil litigation in the 1970's. She has represented both plaintiffs and defendants, chiefly in personal injury, medical malpractice, elder abuse and product liability lawsuits, but also in a wide variety of complex litigation, including civil rights, fraud and class… MORE >

Featured Members

ad
View all

Read these next

Category

Arbitration and Mediation Update | October 2012

Disputing Blog by Karl Bayer, Victoria VanBuren, and Holly Hayes  The following bills relating to alternative dispute resolution were introduced by the 112nd U.S. Congress. The session  convened in Washington,...

By Victoria VanBuren
Category

Negotiating The Negotiation

From the Blog of Phyllis G. Pollack.Mediations are about negotiation. In most negotiations,   the parties focus on the substance of the dispute; that is, on the merits of the controversy....

By Phyllis Pollack
Category

Five Steps Divorced Parents Can Take to Cool Down Holiday Conflict

We all have idealized images of the holiday season–perfect gifts and the warm glow of togetherness. But the gap between expectations and reality can be huge when parents are recently...

By Lorraine Segal
×