divorce tax implications

Divorce can significantly impact your taxes. When assets are divided, there's generally no immediate tax on the transfer; however, future sales of those assets may trigger taxes on gains. Alimony payments might be tax-deductible for the payer and taxable for the recipient, but this applies only to agreements made before 2019 due to tax law changes. Child support is not taxable. It’s essential to consult a tax professional to understand specific implications and plan accordingly, as individual circumstances can vary greatly based on income and asset division.