Divorce & Taxes in 2015 – Deductions You Don’t Want to Miss!

3 March 2016 | 11:40AM

Did you know that some of your legal fees in connection with your divorce may be tax deductible? Generally, legal fees in connection with a divorce are not tax deductible. But there are a couple exceptions:

1. Legal fees related to tax advice in connection with a divorce; and
2. Legal fees associated with obtaining alimony (termed “spousal maintenance” in Kansas but “alimony” by the IRS) are deductible.

Legal Fees Related to Tax Advice

During settlement negotiations, a prudent attorney will provide the client with some advice regarding the tax implications of property division, sale of a marital home, claiming children as dependents, and more. Often times, these issues are contested and negotiated by attorneys. If the fees are related to tax advice, then the fees are deductible!

Legal Fees Related to Alimony

Why does the IRS allow these legal fees to be deducted? Alimony must be claimed as income for tax purposes. Apparently the IRS thought it fair to allow the fees for obtaining that income to be deducted. So, if you received temporary or permanent alimony payments in 2015, the legal fees associated with obtaining the alimony award may be deductible.

More questions? We recommend reading this IRS pamphlet, as it does a decent job of simplifying otherwise complex and confusing tax rules.

The experienced family law attorneys at Joseph, Hollander & Craft LLC work hard to spot and address potential tax implications relating to clients’ divorce settlements. This is important because the biggest taxable events often do not occur during the divorce itself, but in the years to follow. We always recommend that clients work with both an attorney and a tax professional for guidance specific to their situation.

For help with your divorce, contact Joseph, Hollander & Craft LLC today.

Our Locations

Kansas City | 816-673-3900

926 Cherry St
Kansas City, MO 64106
VISIT SITE

Lawrence | 785-856-0143

5200 Bob Billings Pkwy, #201
Lawrence, KS 66049
VISIT SITE

Overland Park | 913-948-9490

10104 W 105th St
Overland Park, KS 66212
VISIT SITE

Topeka | 785-234-3272

1508 SW Topeka Blvd
Topeka, KS 66612
VISIT SITE

Wichita | 316-262-9393

500 N Market St
Wichita, KS 67214
VISIT SITE

Contact Joseph, Hollander & Craft LLC

Contact Joseph, Hollander & Craft to discuss how our team of attorneys can help you.

Hidden
This field is for validation purposes and should be left unchanged.