When divorcing it is important to keep in mind the tax consequences of the division of property, child support and other financial matters.
Minnesota Divorce Lawyer Jason Brown has published an excellent article containing eight tax tips to keep in mind as you move forward with your divorce. Although the article was not written by an Illinois lawyer, it applies to Chicago divorces because it deals with federal tax law:
- Child Support. Child support is not income to the recipient and is not deductible for the payer. Keep this in mind if your spouse is seeking alimony. Child support payments that they receive are not taxable and, as a result, increase their net income each month dollar for dollar. As a result, the “need” of your spouse will be diminished and you may be able to argue that their imputed gross income exceeds their gross pay coupled with untaxed child support.
