Divorce Taxation

Divorce taxation refers to the tax implications that arise when a couple separates or divorces. Generally, alimony payments may be tax-deductible for the payer and taxable for the recipient, depending on the divorce agreement. Property division typically isn't taxed at the time of transfer, but capital gains taxes may apply if the property is sold later. Child support payments aren't tax-deductible for the payer and are not considered taxable income for the recipient. It's crucial for individuals going through a divorce to consider these tax effects to make informed financial decisions.