Tax Considerations in Divorce
with Paul Piasecki

When you go from a We to a Me, taxes will change dramatically. Since money is one of the big factors in your divorce agreement, it’s a good idea to start getting advice soon after filing since. And in the first year, it may make sense to engage a tax accountant who understands divorce tax code.

Your filing status: (married/joint, etc.) is determined on the last day of the year. So, whatever you are on 12/31 determines how you are taxed. If you get pendente lite (pre-divorce alimony), that is considered taxable income for the receiver, or a deduction if you’re the one paying. You should pay taxes on this quarterly or you’re subject to penalties.

Unallocated alimony or support is fully taxable because you’ve lumped child support and alimony together. If you take it instead as two payments, alimony and child support, you can take a deduction on the child support. There are different strategies on how to take that payout that an attorney or accountant can review, but it may be a way to ‘create dollars’ depending on your respective tax brackets if you work together. And if you need another reason to work together it’s this: audit. When your numbers don’t match with your ex’s numbers, that flags the IRS to a potential audit.

And if you’re still confused like we were, the IRS has a publication called a 504 at It will answer all your questions for free.

About the Author Barb & Jo

Through the process of our own divorces, Barb Hazelton and Jo Briggs learned more than they ever needed or wanted to know. Through their friendship, shared experiences, and connections through navigating their own divorces, they created this video series. They've been where you are and they hope Single Process can make it easier for you by connecting you to their resources.