The Law Offices of Abbott & Abbott, P.C.
Get Answers. Call For A Free Consultation.
marietta 678-905-8781 canton 678-792-4908

Divorce can affect a parent's taxes

Georgia parents who may be going through a divorce may be more worried about which parent will be awarded child custody than their taxes. However, decisions made regarding how the child's time may be split up can actually affect a parent's taxes once the divorce process is complete. As such, tax incidence should be taken into account during the divorce process.

A major tax decision that must be made is which parent will be allowed to claim the child as a dependent. Since only one parent can claim a child, some parents negotiate an agreement that allows them to claim the child every other year. If the couple had more than one child, one parent may claim one child while the other parent may claim the other child. In some cases, the custodial parent may allow the non-custodial parent to claim the child. For every child that is claimed as a dependent, certain tax credits and exemptions may be available.

Additionally, parents who earn more than 50 percent of the household income and has their child living with them at least six months out of the year may file as head of household. This allows single parents to potentially claim a certain amount for child care and potentially allows for higher deductions and a lower tax rate depending on their income.

Even when both Georgia parents can come to agreements regarding their children during the divorce process, determining child custody, child support and other financial matters can still be difficult. In most cases, a family law attorney may assist with any negotiations involving decisions that will affect their client's finances once the divorce is finalized. For example, they may work out an agreement so that their client may claim the child as a dependent on their taxes even if the child will not live with them full time.

No Comments

Leave a comment
Comment Information
Email To Hear From UsEmail To Hear From Us