Tax And Financial Planning In The Context Of Divorce
Divorces often present financial planning and tax issues. The issues can concern matters such as property division, maintenance or alimony payments, child support payments and past and future tax returns.
At V. Freitas Law, we have unique expertise in this area. Attorney Veronica Freitas has an LL.M in tax law (Masters Degree) and can effectively guide you through the tax issues relating to family law. Whenever possible, we advocate for settlements or final decrees that do not waste assets through the triggering of unnecessary income, estate or gift tax costs. Our goal is often to maximize the after-tax dollars to our clients while preserving each party’s estate.
Our Lawyers Can Explain The Impact Of Divorce On Your Financial Life
Regardless of your economic circumstances, divorce tends to put an economic strain on everyone involved. Families separate and now have to support two households instead of one. The families’ available income remains the same, while their costs double.
At V. Freitas Law, we are experienced and work with our clients to structure support and settlement agreements that take advantage of tax deductions and exemptions available in dissolution actions.
The following tax issues should be considered in every dissolution action:
- Spousal maintenance is income for the recipient spouse
- Spousal maintenance is tax-deductible for the paying spouse
- Child support is not considered income for the recipient spouse
- Child support is not deductible by the paying spouse
- Real property transfers completed as part of a divorce are exempt from excise and transfer taxes
- Retirement fund transfers from one spouse to another are exempt from taxes and early withdrawal penalties if performed pursuant to a Qualified Domestic Relations Order (QDRO)
- Transfers between domestic partners are not exempt from taxes and penalties because they are governed by federal and not state law
Providing Strong Legal Representation In Seattle Since 1991
With a strong litigation background—and over five decades of combined experience—the legal team at V. Freitas Law, PLLC, is dedicated to helping you minimize the tax consequences of your divorce. With an LL.M in taxation, lead attorney Veronica Freitas is uniquely qualified to help you pursue the financial future you desire.