asset transfer

Illinois Divorce and Taxes

IRS LogoIRS Pub 504

If you are getting divorced, or recently were divorced, it is important to speak to an accountant regarding your tax situation. Note that the IRS considers you married if you were married on the last day of the year, and your divorce decree also provides for the award of tax credits and exemptions for children. Generally speaking, the transfer of property as provided in a divorce decree (distributing assets from bank accounts for example) is a tax free event, but proceeds from a home sale due to divorce are taxable.

As you can see many tax issues exist due to divorce, and it is worth the time and money to consult with a good accountant about these issues.

IRS Publication 504, Divorced or Separated Individuals, is a great source of information (and surprisingly clearly written!) about tax topics.

Please call at 630.665.7676 to schedule a consultation about your maintenance, support, or divorce case.

Note – Per IRS Circular 230, this information is not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed; this information was written to support the promotion or marketing of our legal servcies, and you should seek advice based on your particular circumstances from an independent tax advisor.