Tax Implications of Divorce

Divorce can significantly impact your taxes. One key consideration is the division of assets; when you divide property, it usually isn't taxable, but selling assets afterward may trigger capital gains taxes. Alimony payments may be deductible for the payer and taxable for the recipient, though rules changed in 2019 for new agreements. Child support is neither taxable nor deductible. Additionally, filing statuses change post-divorce, influencing tax rates and potential benefits. It’s wise to consult a tax professional to navigate these complexities and ensure compliance with tax obligations while optimizing your financial situation post-divorce.