Trouble Never Comes Alone – Some Issues of Divorce and Taxation

Divorce is stressful enough to forget anything else while struggling through the emotions of the ruined life and lifestyle, accusations, and insults arguably results in one of the most intense stresses of modern life. This stress brings decreased income, reduction in property, and a lack of attention to matters other than the divorce itself, such as taxes. This article reviews some controversial and unexpected combinations and provides some tools for tax planning related to divorce issues. While presuming some understanding of tax law, this article stresses the tax law applications in different situations that family court judges create, usually without having considered tax ramifications. The latest United States Supreme Court decision added another layer of confusion and complications to the field of family law by allowing legally married same-sex persons (SSMPs) to be treated as married for federal income tax purposes. This article is treating the SSMP the same as any other married couple.