Tax Articles

Here, you’ll find access to the most detailed information as it pertains to Divorce related Taxes in North Carolina.


Divorce & Taxes: The 4 Things You Must Know

Divorce & Taxes: The 4 Things You Must Know

For those who are contemplating, in the midst of, or just out of a divorce, the difficulties of tax season pose an even greater challenge. The stakes are high and the penalties for mistakes are severe, making it critical that you avoid the traps and missteps that plague the world of tax and divorce.


Children and Taxes Post-Divorce: The Basics

Children and Taxes Post-Divorce: The Basics

Unlike alimony payments, child support payments are never taxable nor deductible. There are, however, several other tax implications that take effect upon separation that deal with children. Arguably the most important child related tax consideration is the dependency exemption. The exemption, similar to a tax deduction in operation, reduces a person’s taxable income by a set amount. Parents can either agree who is entitled to...

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Children & Taxes: The Details

Children & Taxes: The Details

How custody and support can impact your tax situation Separation and divorce trigger numerous tax consequences; some of the tax rules related to divorce are straight forward, while others can get fairly complex. One of the more simple rules to understand, however, relates to how the federal tax code treats child support payments. Alimony payments are deductible by the paying spouse, and taxable as income...

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Property Division & Taxes: The Details

Property Division & Taxes: The Details

Tax-Free Transfers The tax implications of dividing marital property can create a bit of a headache. Most couples have multiple types of property; personal property, real property, investment and retirement accounts, and even business interests. It is crucial for both spouses to identify and consider relevant tax consequences that can occur when dividing assets and liabilities. It is important to note that prior to 1984,...

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Property Division & Taxes: The Basics

Property Division & Taxes: The Basics

Upon the dissolution of a marriage, all marital property will have to be divided amongst the spouses. The dividing of most assets will not trigger a tax event; the IRS has created a rule allowing for any spouse-to-spouse transfer that takes place incident to divorce to be tax-free. Thus, a lump sum payout from a checking or savings account can be transferred with no tax...

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What You Need to Know About Alimony & Taxes

What You Need to Know About Alimony & Taxes

Alimony is money paid by one spouse to the other spouse, after separation, in order to provide the receiving spouse with support. Alimony is also sometimes referred to as spousal support, financial support, subsistence, upkeep or maintenance. Regardless of which term is used in your court order or separation agreement, the same tax implications will apply. Alimony is taxable to the spouse who receives the...

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Divorce, Alimony, & Taxes: The Details

Divorce, Alimony, & Taxes: The Details

There are important tax implications to consider regarding those paying or receiving alimony. If alimony is going to be at issue in your divorce, you certainly want to be aware of these implications as they can have a serious impact on your negotiations. Terminology As an initial matter, “alimony”, simply refers to money that one spouse furnishes to the other spouse after separation for support....

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