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 ? ? ?

Tax Deduction Considerations And High Asset Divorce

When a New Jersey couple is going through divorce, one of the things they will need to decide is which one should be able to claim deductions available for a dependent child or children. Although the IRS will normally consider a child who lives with and is financially supported by one parent over the other to be that person’s dependent, the parents are free to agree otherwise for deduction purposes.

Some parents agree to alternate the ability to take deductions on their income taxes each year. In other cases, some parents, being aware that a deduction might be available to one parent due to income level but not to another, agree to allow the lower-earning parent claim the deductions. For example, a parent’s ability to claim the child tax credit is phased out if their income is greater than $75,000, and only parents who make less than $46,997 with three children can receive the earned income credit.

Some parents are able to use the possible deduction abilities to secure agreements regarding other aspects of property division. By being willing to negotiate, a parent may be able to gain the ability to keep a larger share of a different desired asset.

In a high net worth divorce, forging agreements may take creativity and the willingness to negotiate, especially if a person is desiring to protect one type of asset and save it from division. A family law attorney might look at different things such as tax deductions in order to secure agreements. An attorney may also help advocate to make certain his or her client receives a fair share.

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



Morristown / Morris County Law Office

65 Madison Ave

Suite 420

Morristown, NJ 07960

Morris County Mediation Office Map