Protecting Your Financial Interests
The outcome of a divorce can have a profound impact on your short- and long-term financial security. Key financial issues in a divorce include property division, allocation of marital debt responsibility, child support, spousal maintenance (alimony) and the manner in which divorce agreements are structured.
A key financial issue that one may not consider when entering into a divorce is taxes. The tax consequences of a divorce should be accounted for in any structured dissolution agreement. At Brooke, Brady & Schopfer, LLP, we are here to help analyze every detail and option when it comes to a divorce and taxes.
New York Tax and Divorce Law
Tax consequences that should be considered include:
- Child support is not income and does not form the basis of a tax deduction
- Spousal maintenance (alimony) is income to the receiving spouse and a tax deduction for the party required to pay it under New York State Law only. Spousal maintenance is not income nor is it a deduction under Federal law.
- Which party will have the benefit of dependent child deductions/tax credits
- Whether the parties should file taxes jointly or separately
- Potential tax advantages if the parties wait to finalize their divorce
If you are getting a divorce and need sophisticated legal representation that will protect your financial rights and interests, contact the family law attorneys at Brooke, Brady & Schopfer, LLP. Based in Poughkeepsie, New York, we have been representing clients in divorce and family law matters for more than 30 years.
Tax Issues in High Net Worth Divorces
At Brooke, Brady & Schopfer, LLP, we have helped many clients involved in high net worth divorces to protect their financial rights. In cases that involve complex assets, we have the ability to work with CPAs, financial planners and other knowledgeable financial experts that can provide assistance with complex tax issues.
In addition to contested divorce cases, we also represent clients in the collaborative divorce process, which utilizes a less contentious approach to dispute resolution. When we handle a collaborative divorce with significant assets, we frequently utilize the assistance of financial planners. Our focus in every case is the protection of our client’s rights and our pursuit of a final result that is in our client’s best interests.
If you need to speak with a lawyer about the tax consequences of divorce and your rights, contact the divorce and family law professionals at Brooke, Brady & Schopfer, LLP, today by calling 845-454-2540 to schedule a free initial consultation.