How Will My Illinois Divorce Affect My Taxes?

 Posted on May 26,2023 in Illinois Divorce

Going through a divorce can be a stressful time in anyone’s life, but what many people do not realize is that it can also drastically affect their taxes. Therefore, if you live in Illinois and are considering a divorce, it is critical that you understand the tax implications that may arise as a result of your divorce. In any event, if you are considering divorce, contact an experienced divorce lawyer to get the process started and to learn more about how you can protect your financial future as you go through your divorce.

Here Are the Ways Your Divorce Can Affect Your Taxes

When it comes to taxes, the most significant financial issue in a divorce is typically property division, child support, and spousal support payments.

Property Division

In Illinois, marital property is divided equitably, meaning that it is split between spouses as the court deems fit, depending on each party’s unique circumstances. Splitting that property and assets that have increased in value over the course of the marriage can result in distinct tax implications. An experienced divorce attorney can help you understand and navigate these implications to ensure you are not underpaid for any marital property and that all other considerations are accurately taken into account.

Child Support

Illinois law mandates that child support is not tax deductible for the payer or the recipient of the support. It would be best to make sure that your final divorce decree specifies which spouse will be permitted to declare each of your children as a dependent.

Spousal Support

Illinois law stipulates if your divorce decree was finalized after the first of January 2019, spousal support payments will be included as income on the payor’s tax return and not included as a source of income for the recipients.

Along With My Divorce Attorney, Should I Also Consider Hiring Tax Professionals?

Depending on the complexities of your situation, hiring a tax professional such as a CPA may be necessary to help you understand the complexities involved with how taxes may affect your Illinois divorce. Having a tax professional appraise tax consequences can help you understand the ramifications of certain decisions. Moreover, a CPA can help you assess potential outcomes and assist in minimizing your tax liability in order to protect your bottom line.

Contact a Kane County Divorce Attorney

Contact the highly respected St. Charles divorce lawyer with Weiler & Associates, Inc. for astute legal representation in your Illinois divorce. Call 630-331-9110 for a private consultation.

Source - https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2086&ChapterID=59