Tax Consequences of Pennsylvania 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. Pennsylvania 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.

 

Montgomery County, PA Divorce Lawyers

Contact The Martin Law Firm today at 215-646-3980 for a free case evaluation regarding divorce in the Norristown, PA area. Our experienced Norristown divorce attorneys will be happy to assist you. Our divorce attorneys represent clients in Norristown and throughout Montgomery County, PA, including Blue Bell, Lansdale, King of Prussia and Plymouth Meeting.