Wis has spoken to lawyers, CPA’s and others on Divorce Tax Wisardry.
The tax law is filled with opportunities and traps for couples who are divorcing. Saving taxes may be the only area that couples will agree upon since they can save money. I work with divorcing individuals and their lawyers to help them pay the lowest legal taxes. Then they can share the tax savings.
TIP: Did you know that attorney fees for divorce advice are generally not deductible, but you can deduct the part of the lawyer’s fee that is attributable to setting alimony.
TIP: Oh, did I forget to mention that my fees for tax advice are deductible? Ask your attorney to break out the fees for tax advice.
TIP: Alimony is deductible by the payor and taxable to the recipient. Lower the couples’ taxes by making sure that payments from the higher earner to the lower earner qualify as alimony.
Divorce is a financially stressful time, but I can probably show you ways to save taxes and make more money available. For complete personal tax planning for your divorce, E-mail email@example.com.