You might be ready to end your marriage in Pennsylvania, but before you do, it is important to consider the various ways your life will be impacted once your divorce has been finalized. One important area that many individuals fail to take into consideration is how their divorce will affect their taxes.
Although you may be prepared for your property and assets to be divided, and even have worked out whether alimony will be paid to one spouse, the tax world may not be an area that has crossed your mind. It’s understandable, as there are lots of other concerns that likely need your immediate attention, and taxes likely seem a long way off.
For this reason, we have reviewed some of the most common tax laws in PA as they relate to divorce. We’ve also covered how you can modify an existing family law order, if necessary, based on these laws.
Tax Laws and Divorce in PA
Any time a couple divorces, there are sure to be tax consequences. When a couple is married and has a two-income household, they will likely enter into a certain tax bracket and be obligated to meet specific tax requirements as a result of their income. With this in mind, there are a few different ways your taxes will be affected when your divorce is finalized.
In terms of your property and assets, if you sell your shared home, you will lose out on the opportunity to deduct the interest on your mortgage and various real estate benefits.
Additionally, if you have life insurance policies, stocks, pensions, and retirement savings accounts, these will certainly be impacted, depending on which spouse retains which nonliquid assets in your divorce.
Finally, you will need to work out which parent will be entitled to the available tax exemptions when claiming any children you share together. Typically, the custodial parent will be the one to obtain these child credits, though there are instances where parents trade off on claiming their children on their taxes each year.
Revising an Existing Order after Your Divorce
Once the terms of your divorce are settled, there is still a possibility that you will need to make revisions to your existing orders, depending on how significantly your tax consequences have influenced your life.
More often than not, child support, child custody, and alimony orders are the ones that may need to be modified or even enforced if your ex-spouse refuses to comply with a court order. Your lawyer will be able to assist you in petitioning the Pennsylvania court for any necessary modifications or enforcements that you need in order to move forward with your life.
Reach Out to a PA Divorce Lawyer
If you have further questions about how your taxes will be impacted by your impending divorce, or if you are interested in having an experienced PA divorce lawyer represent your case, you can consult with Lisa Marie Vari & Associates, P.C. today. Simply complete the online contact form we have provided below, or give our office a call at 1-844-VARI-LAW (827-4529).