When a Florida couple decides to end their marriage, there are significant financial decisions they must make or have a court decide for them. The choices made during divorce will have an impact for years to come, and it is prudent for a person to consider how to pursue a strong financial future during this process. There are certain tax strategies that may make it easier to resolve divorce disputes and reach a reasonable settlement.
One strategy may include putting alimony in a trust. With changes in tax laws, this may be a helpful way to encourage negotiations between couples, particularly in high asset divorce situations. It may also be smart to sell the family home. As divorce will bring significant financial changes to both parties, this can help the parties to manage finances and reduce their tax burdens.
Parents also want to consider tax exemptions for dependents. Often, the parent that gets the exemption depends on where the child spends most of his or her time. By allowing a lesser-earning spouse to have the kids slightly more often, it can make a difference for the children when applying for student financial aid. Before agreeing to divorce terms, it’s also smart to think about other tax implications, not just those related to child-related exemptions.
There are many tax issues to consider in divorce. Someone making important decisions for his or her post-divorce financial future may want to discuss concerns in with an experienced Florida family law attorney. A complete evaluation of the individual case can help a person understand his or her legal options.