The Tax Cuts and Jobs Act passed Congress last December and there is a lot of talk about how it will impact the tax situation for individuals. Few have considered the impact that the new law will have on divorce and child custody. (See How Will the New Tax Law Affect Your Divorce? )
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Taxes
Reasons not to file a joint tax return during a Texas divorce
Texas marital property law is different than most other states because it is based on a scheme of community property. In dealing with filing of tax returns, this difference can cause a significant impact on divorcing spouses.
In community property states, each spouse, if filing separately, reports one half of the other spouse’s community income,…
Strategic Tax Filing During Divorce in Texas
Filing income tax returns while a divorce pends can be an especially contentious issue. When one spouse lacks trust in the other spouse, even filing a joint return can be troublesome. Usually filing jointly results in reduced overall tax burden for the still-married couple. But, sometimes filing jointly may result in a greater benefit to…
Who gets to claim the child as a dependent in a Texas divorce
The question often arises after a divorce in Texas — which parent gets to claim the child as a dependent for tax purposes? Often this issue is settled by the obvious split of parenting time greatly in favor of one parent, but as we have seen a rise in equal time splits for parents and…