What is a qualified domestic relations order (QDRO) and how could it effect your income tax?

A qualified domestic relations order (QDRO) is a court judgment, decree, or order establishing the marital property rights of a spouse, former spouse, child, or dependent of a pension plan participant with respect to certain qualified retirement plans. Several requirements and restrictions apply. To what extent are retirement assets subject to divorce court jurisdiction? A retirement plan is a form of property. Like houses, cars, and bank accounts, a retirement…  Read more

Are alimony payments considered taxable income?

Alimony is a support payment made to a former (or separated) spouse under a divorce decree or separation instrument in an attempt to maintain the predivorce lifestyle. Alimony is sometimes called maintenance. Simply stated, for pre-2018 divorces, alimony is taxable income to the one who receives it and tax deductible to the one who pays it. However, the divorce agreement can designate alimony as nontaxable and nondeductible. For post-2017 divorces,…  Read more

Dependency Exemptions: Divorce

What is a child dependency exemption? If a separated or divorcing couple has children, an important tax decision involves assignment of the child dependency exemption. Exemptions are fixed amounts that you subtract from your adjusted gross income (AGI) to calculate taxable income. You can deduct $4,050 for each exemption you claim (for 2016 and 2017). Along with personal exemptions, you’re generally allowed one exemption for each person you can claim…  Read more

Tax Planning for Marriage and Divorce

What is tax planning for marriage and divorce? If you’re married or considering a divorce, you should be aware of the income tax ramifications of the financial decisions you’ll be making. Regarding marriage, you should be knowledgeable about selecting a filing status for tax purposes (and the concept of the marriage penalty). In addition, you should be aware of the concepts of innocent spouse and injured spouse relief. Finally, you…  Read more

Financial Professionals: Who’s Who

Financial Professionals: Who’s Who By IDFA on March 27, 2012  What do those letters that follow the names of financial experts mean? During your divorce, you need sound financial advice to ensure the settlement is fair to both parties; afterwards, you’ll probably need help adjusting to your new circumstances and planning for a secure future. Here’s an introduction to some of the financial professionals you may need. CPA/CA/CGA: an accountant can…  Read more

Want to grow your business? Our Free Resources will Help