You are getting divorced, that much is certain. You know that the custody of your child will be decided and that various assets with be divided.
Heavy student loan debt is a burden for people throughout the United States, but debt-related matters can become especially complicated in the midst of divorce. Like the majority of states, New York is an equitable distribution state, which means that marital assets and debts will be divided equitably between the spouses.
Tax time is unpleasant. Even refunds are depressing when taxpayers realize the check they get back is money they should never have paid. Most New York residents have at least some idea of an expected federal tax liability before the Internal Revenue Service deadline rolls around. The exception may be spouses in the middle of a divorce.
Federal income taxes seem like the last item on a divorcing spouse's turbulent agenda. New York financial and legal experts share the idea that tax implications of divorce are nothing to ignore.
New York residents take note; the last day of any year is the most significant for tax filing status. The married or unmarried state of an individual on December 31 determines how a taxpayer files with the Internal Revenue Service.
Unlike child support, paid alimony is tax deductible. For recipients, payments are taxed as income. Legal experts say federal tax deductions for paying spousal maintenance are not automatic.
Asset division is a part of every divorce. How assets are divvied up depends on both state and federal laws. For couples going through a divorce in New York, family courts use what is called equitable distribution to divide marital assets and liabilities. "Equitable" is what the court rules as fair, not always an exact split of 50-50.