65 Madison Ave · Suite 420 · Morristown, NJ · 07960

¡Attention TAC People!

Press 'p' on your keyboard to make this palette go away.

Max width: 1200px
Color Hex R G B
Blue from Logo#003d65 0 61 101
Darker Blue#021020 2 16 32
Red from Logo#780500 120 5 0
Darker Red#400000 64 0 0
Gray from Modern Firm Site#f3f2ed 243 242 237
Bright, Light Blue#ccebff 204 235 255
Form Input Background Blue#accfe6 172 207 230
Slightly Darker Blue#002e4d 0 46 77
Slightly Darker Gray#e6e5e0 0 46 77
Darker Gray#cccbc7 0 46 77
Lighter Logo Blue#005c99 204 235 255
Login Link Blue#598fb3 89 143 179
Slighty Lighter Red#99150f 153 21 15
Slighty Darker Gray#b3b2ae 179 178 174
Hunter Green#013b23 1 59 35
Lighter Green #025935 ? ? ?
Beige Charcoal #1f1e1e ? ? ?
"Metallic Gold" #D4AF37 ? ? ?
"Darker Green" #012e1b ? ? ?

April 15th Is Just Around The Corner

As tax season approaches, recently divorced parties should pay special attention to the tax consequences of certain aspects of their settlement agreements or judgments of divorce. The most common question is whether certain payments, such as alimony and child support are taxable events. The simple answer is that alimony is generally taxable as income to the party receiving it and deductible by the paying party, whereas child support is not taxable and deductible. The taxability of these payments should certainly be considered when negotiating the terms of your divorce. Tax issues can be of such importance, that changes in the tax code affecting the taxability or deductibility of payments may be sufficient to warrant a Court review to modify the terms of your agreement. Additionally, it should be noted that payments and/or transfers of property (whether liquid assets, or otherwise), referred to as “equitable distribution,” are not generally taxable events. It is important to consider these issues during the negotiation and drafting of any settlement agreement.

Further, prior to filing taxes, divorced parties should evaluate their agreements or judgments and determine which party will receive credits/deductions/exemptions for real estate, minor children, etc. and ensure that they begin compiling the forms and information needed for tax time. By way of example, if the non-custodial parent is to claim a child as a dependent, the custodial parent will need to fill out a form provided by the IRS. Now is a good time to examine these issues to avoid panic once the tax filing deadline is approaching. Lastly, and most importantly, parties should consult a trusted tax professional during and after the divorce process in order to obtain the most up-to-date tax advice and information. Do not rely upon your family law attorney, friends or family for tax advice. Posted by Robyn E. Ross, Esq.

*Disclaimer- Information in this blog post should not be considered or construed as tax advice. In order to obtain tax advice, please consult with a tax professional.

Begin Your Conversation

  • Disclaimer: Contacting our firm via the internet does not create an attorney-client relationship. Please do not send any confidential information through this form.

Contact Our Morris County Office

866-957-2982

973-828-0829

Morristown / Morris County Law Office

65 Madison Ave

Suite 420

Morristown, NJ 07960

Morris County Mediation Office Map