Getting Divorced During Tax Season in Illinois 

 Posted on February 29, 2024 in Divorce

As tax season approaches, many couples may find themselves facing the difficult reality of getting divorced. In Illinois, navigating the intersection of divorce and taxes can be complex and overwhelming. Understanding the implications and considerations involved can help individuals make informed decisions during this challenging time. If you seek guidance in navigating tax season when going through a divorce, contact a knowledgeable lawyer to lead you through the process to ensure you can protect your rights and look out for your best interests. 

Should I File Separately if I Am Getting Divorced? 

One important aspect to consider when getting divorced during tax season in Illinois is the filing status. The IRS considers a couple married for the entire tax year if they were still legally married on December 31st. Once the new year begins, the IRS will still consider you legally married and thus allow you to file a joint return for the previous year. However, if the divorce is finalized before the end of the year, each spouse will need to file separately. 

Does Dividing Property in Divorce Affect Taxes? 

Another crucial consideration is the division of assets and liabilities. In Illinois, marital property is divided equitably, not equally. This important distinction is a hallmark of Illinois divorce law and will affect any and all couples who get divorced in the state. When negotiating a settlement, it will also be important to understand the tax implications of different assets, such as retirement accounts, real estate, and investments. Consulting with a tax professional or financial advisor can help ensure that the division of assets is done in the most tax-efficient manner possible. 

Are Taxes Affected by Child Support and Alimony?

Child support and alimony are also important factors to consider during a divorce in Illinois. Child support payments are not included as part of your taxable income by the state of Illinois or the Internal Revenue Service (IRS). Additionally, it is important to update tax-related documents and accounts after a divorce. This includes updating your filing status with the IRS, changing your withholding allowances on your W-4 form, updating your beneficiaries on your retirement accounts and life insurance policies, and updating your estate plan. 

Contact Our DuPage County, IL Divorce Lawyer for a Private Case Consultation

Ultimately, getting divorced during tax season can be complex and offer unique challenges to those going through it. Understanding the tax implications and considerations involved allows people to make informed decisions as they navigate tax season and a divorce. Contact the experienced and knowledgeable Wheaton, IL divorce attorneys with The Stogsdill Law Firm, P.C.. Call 630-462-9500 for a private consultation.