Filing taxes after divorce can complicate an already confusing process. In the interview, Mr. Cordell reviewed whether child support or attorney fees are tax deductible, who has the right to claim children as dependents, what status to file under after divorce, and more. [Read more…]
Divorce can have a significant impact on your taxes. And unfortunately, there is a significant portion of the population that could be losing thousands of dollars because they’re not getting the proper amount of professional advice they need regarding the value of their assets.
In a recent appearance on Phoenix Money Radio’s “Business for Breakfast,” Cordell & Cordell Principal Partner Joseph Cordell discussed how financial advisors can be of assistance to clients going through divorce when evaluating the value of their assets. [Read more…]
In “Tax Expertise: A Valuable Skill Throughout Divorce,” Mr. Cordell explained that attorneys are not always aware of as many tax subtleties as financial advisors. He described the benefits that financial advisors can bring to the entire divorce process, particularly with regard to explaining statues on taxes.
Mr. Cordell wrote that such financial advisors could catch oversights and be beneficial to both parties in a divorce case.
“Knowing the tax rules can allow you to achieve more subtle gains in settlements. You can often surmount roadblocks in settlement negotiations with imaginative and beneficial solutions using the subtleties of tax law,” said Mr. Cordell. “It may be that one party can walk away with a post-tax sum that was equal to the other party’s, even though it appears the former received nominally more in the pretax settlement.”
Mr. Cordell mentioned that taxes often impact issues related to alimony, child support, dependent exemptions, property division, home sales exclusion, deferred compensation with retirement assets and more.
He described the different roles financial advisors could potentially play in a divorce situation pertaining to one or more of the issues above.
“Advisors could lend their expertise as consultants during the settlement negotiations, as expert witnesses during litigation or as behind-the-scenes advisors helping prepare one party for trial. All of these functions allow them to identify relevant tax issues and design creative solutions that attorneys all too often overlook,” said Mr. Cordell.
Cordell & Cordell Austin divorce lawyer Kelly Burris appeared on KVUE ABC News in Austin to discuss the most common tax questions facing divorced and divorcing men. Watch the three-minute video below to learn the answers to questions about filing status and what divorce-related expenses you can deduct: