Resolving Your Concerns About Tax Implications of Divorce
At the Diamond Law Firm in Los Angeles, many of our clients are concerned about how their outstanding tax liabilities are going to impact their divorce cases and vice versa. These are major issues for many people who are going through the divorce process in California.
Our lead attorney, Joseph Diamond, is also a certified public accountant (CPA) with two decades of high-end accounting experience. He is prepared to guide clients through the intricacies of tax issues in their divorce cases. Contact us today to schedule a free consultation.
Addressing Tax Returns During the Divorce Process
Until your divorce is final and your marriage is legally dissolved, any tax returns need to be submitted with the status of either married filing separately or married filing jointly. That means you may be implicated in any tax liabilities incurred by your spouse and vice versa.
Our attorneys are experienced at negotiating and litigating the issue of whether one spouse should be held harmless for the other spouse's errors and omissions in tax returns.
In many cases, the courts have found it appropriate to assign all tax liabilities to the spouse who incurred them after the initiation of the divorce. However, if both parties benefited from a deduction that is later disallowed, it may be appropriate for both to share the tax liability.
Evaluating Your Liability for Back Taxes
Many of our clients also want to know whether they will be held responsible for back taxes that were initially incurred during the marriage. Generally, both spouses are accountable for these tax liabilities, even after the divorce. However, there are exceptions.
If one spouse incurred a tax liability by taking an inappropriate deduction without the other spouse's knowledge (for instance, writing off a trip associated with an extramarital affair as a business expense), it may be possible for the other to make an innocent spouse claim.
The lawyers at our firm are experienced at addressing all of the tax implications of divorce, during and after the divorce process. Contact us to discuss your questions or concerns.
