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Divorce Tax Consequences In Connecticut

In any divorce, there are always tax consequences that must be carefully considered. These consequences can amount to substantial tax penalties or savings depending upon the final agreement reached. Contacting a skilled lawyer with experience in these matters can help ensure that your financial interests are protected both during and after your divorce.

At The Prince Law Group, LLC, our attorneys have more than 30 years of experience protecting clients and their families. Contact our office in Stamford, Connecticut, to discuss your case in a consultation.

Tax Implications

Tax issues most commonly arise when divorcing spouses divide property and marital assets, and pay or receive spousal support/alimony. We will always take the time to explain these standard issues with you.

Other examples of divorce tax issues include:

  • Transferring retirement accounts: Retirement accounts can be transferred to a spouse without any tax consequences so long as it goes directly into another retirement account. If it does not, the recipient may be able to claim a divorce hardship and pay normal income taxes.
  • Employee bonuses: When calculating the tax implications on bonuses and other sources of income, it is necessary to take into account whether the payor is paying gross or net income. Failure to do so may result in the payor needlessly giving all of his or her bonus money to an ex-spouse.
  • Alimony/spousal support: Alimony is considered a tax deduction for the spouse paying it, while it is considered income for those receiving it.

There are many other tax implications to consider when finalizing a divorce. Our experienced lawyers will thoroughly analyze your situation and make you aware of all potential considerations before pursuing a resolution.

Contact an Experienced Divorce Attorney

The impact of your divorce settlement on your taxes can be quite costly if not addressed proactively and thoroughly. Contact a lawyer at The Prince Law Group, LLC to help you understand divorce tax consequences and all other financial implications.