Wilson Whitaker Rynell

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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
wilson whitaker rynell attorneys and counselors at law logo
972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN

Tax Planning in Divorce in Texas

ATTORNEYS IN DALLAS

Jointly owned property, such as real estate, divided as a part of divorce generally will not incur any tax consequences when such transfer is incident to divorce.

Tax Planning in Divorce

When deciding to initiate divorce proceedings, individuals typically reflect and carefully consider their options. While there can be many reasons for choosing to terminate a marriage, it is vital to contemplate the various ways in which this decision will impact other aspects of life, such as finances. It is important to keep in mind that both the distribution of marital assets and a support order can potentially affect your tax status.

Tax Implications of Support Obligations

When filing a tax return, it is required by federal law to report all income earned. It is important to note that child support payments are not considered taxable income for the parent receiving the payments nor can they be deducted from the gross income of the parent making the payments, regardless of the number of children covered under the support obligation. In contrast, spousal support payments have historically been viewed as taxable income for the party receiving support and deductible from gross income for the party making the payments. However, changes in the federal tax law state that spousal support payments made after a divorce finalized in 2018 or later will not be considered taxable income for the recipient nor deductible from the gross income of the payor.

Important tax items to consider during the divorce process in Texas:

- Determining the Appropriate Tax Filing Status;
- When and Where to File the File & Finalize the Divorce;
- Tax Credits, and Who May Use Them;
- Tax Treatments of Alimony or Spousal Maintenance;
- Transfer of Property and Tax Consequences;
- Tax Carryovers; and Division of Retirement Assets.


Filing Tax Returns during Divorce

When divorcing, it is not possible to file a joint tax return for the year. Therefore, during tax planning, it is crucial to determine whether to file taxes jointly or separately. If you file separately, you will be solely responsible for your individual tax obligations to the IRS, without sharing the responsibility for your estranged spouse's tax obligations. Nevertheless, filing separately may lead to a higher tax rate and prevent you from claiming specific deductions.

It is also vital to establish who can claim a child as a dependent on their tax return if you and your spouse have a child. If no court order specifies who can claim the child, and you cannot agree, typically the parent with physical custody of the child for the majority of the time can claim the child.

Tax Implications of the Distributions of Marital Assets

When divorcing couples jointly own property, such as real estate, there are generally no tax consequences if one spouse transfers the property to the other pursuant to their divorce agreement. However, if the marital home is going to be sold, it may be more advantageous to do so before the divorce is finalized, as most married couples are eligible for a greater capital gains exclusion than single individuals.

The taxation of retirement funds from a 401K or pension that are being divided between divorcing spouses depends on the manner in which they are distributed. It is important in most cases to have a qualified domestic relations order to define each party's tax obligations and prevent any need to pay taxes in connection with the division of the retirement plan.

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Best Texas Divorce Lawyers

Our Dallas Divorce Attorneys Serve Clients Throughout Texas


In order to best prepare yourself during the divorce process, it is vital that you have a qualified divorce attorney by your side. Our divorce law firm is dedicated to providing knowledgeable, professional, and effective legal counsel for all types of family and divorce matters. When you work with our experienced Dallas family law attorneys, you can trust that we will have your best interests in mind.

Speak with an Experienced Divorce Attorney

At Wilson Whitaker Rynell, our attorneys possess the expertise and experience necessary to evaluate how various tax planning options in divorce may impact your tax situation, and we can assist you in determining the most advantageous course of action for your individual circumstances. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.

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By Leigh Whitaker January 28, 2025
Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. For one, they often have experience working on issues that disproportionately affect women in divorce such as spousal support (alimony), child custody disputes, and asset division. Additionally, female divorce lawyers offer a unique level of empathy, understanding, and communication. As a result, many clients feel that they are more approachable and compassionate, which is beneficial when dealing with the emotional turmoil of the process. More importantly, female divorce attorneys are more familiar with how the court treats women in divorce cases and use this knowledge to strategically protect their clients’ interests, whether male or female. Why Our Female Divorce Attorneys May be Right for You At Wilson Whitaker Rynell, our female divorce attorneys are skilled, knowledgeable professionals, they also have many years of experience in handling complex divorce cases. Whether it’s issues surrounding custody of children, alimony, or asset division, our female divorce lawyers ensure each client receives high-quality legal advice. Our firm’s female divorce attorneys provide the highest level of personal attention, ensuring that each client’s unique needs and concerns are addressed through every step. Unique Challenges Women Face in Family Law Disputes in Texas Family law disputes can be emotionally charged and legally complex, especially for women navigating the process in Texas. Women often encounter unique challenges due to their roles in the marriage and family dynamic, particularly when it comes to child custody, child support, and the division of marital assets. Child Custody Challenges In many marriages, women take on the primary caregiving role for their children. However, when it comes to custody decisions, courts in Texas prioritize the best interests of the child over parental gender. While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. Additionally, women who sacrificed their careers to support their spouses or raise children may feel disadvantaged during the division of assets if their earning potential is limited compared to their ex-spouse. How Your Divorce Attorney Will Support You Each divorce case is unique, and having an experienced attorney standing by you is vital. Whether you’re dividing assets, negotiating child custody, or managing other complex legal issues, the female divorce attorneys at Wilson Whitaker Rynell are here to protect the interests of you and your family. Our attorneys will take the time to understand your unique circumstances and empower you to make informed decisions that support your career, family and future. When you choose a female divorce attorney from Wilson Whitaker Rynell, you can trust that they will: Prioritize your family’s best interests. Negotiate with integrity, ensuring fairness and transparency. Clearly explain all your options and their potential outcomes. Help you create the future you want by offering trusted legal advice. Use efficient methods to minimize unnecessary costs and keep the process manageable. Navigating family law disputes requires a thorough understanding of Texas family law and strong advocacy. Women facing divorce or other family law issues are encouraged to seek an experienced family law attorney who can provide personalized guidance. A skilled lawyer can help craft a strategy that protects their rights and ensures a fair resolution. This includes representing their interests in court, negotiating settlements, and helping enforce orders such as child support or spousal maintenance.
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