Just as getting married is a significant transition, getting divorced is also a major adjustment. A New York divorce has both emotional and financial impacts that can last years. One financial impact, in particular, is the effect that the dissolution of a marriage has on tax payments.
In many cases, incomes following a divorce are not the same as they were prior to the divorce. This is due in part to the fact that child support payments and/or alimony payments may now need to be made or are being received. In other cases, it is because the spouse who used to stay home to take care of the kids is now making a return to the workforce.
When working in a W-2 job, taxes are simply withheld from each paycheck. However, making estimated tax payments is necessary for those receiving alimony, as none of this money is withheld upfront. These estimated payments must be made at the start of each quarter of the year. Enlisting a CPA’s help may be necessary for accurately calculating estimated tax payments and then filing the proper paperwork for them.
Divorce in Bronxville and elsewhere in New York can be complicated, especially when many assets are involved in the property division process. It can also be challenging for those nearing retirement, when large amounts in retirement savings may be at stake. An attorney can help in fighting for one’s best interests at all stages of pending divorce proceedings to ensure the most financially healthy situation possible following the marital dissolution.
Source: wtop.com, “5 things women should know about taxes after divorce“, Dawn Doebler, March 22, 2017