Five Important Tax Tips in Divorce

  1. Some attorney’s fees may be tax deductible, including, but not limited to, fees for tax planning and fees for generating taxable income.
  2. The income tax exemption for minor children should be a subject of negotiation.  It has substantial ramifications to both parties.
  3. Remember that maintenance is income to the recipient and a deduction to the payor.
  4. Child support is not taxable to the recipient and is not a deduction to the payor.
  5. When there are two or more children, both parents can be head of household under certain circumstances.