Tax Consequences in Divorces Involving Spouses Over 50

Attorneys in DuPage County for Understanding Tax Considerations in an Older Divorce

Regardless of your age, a divorce is going to have a profound effect on you. Some of the impacts will undoubtedly be emotional and psychological, and some of them will be practical and logistical. In almost every case, there will also be serious financial implications caused by the divorce, especially for couples who are over the age of 50 and are nearing retirement.

If you over 50 and are considering a divorce, the compassionate divorce lawyers at Goostree Law Group are equipped to provide the trusted guidance and skilled representation you need as you begin the process. We understand that tax concerns are often among the most complicated financial considerations in an older divorce. At our firm, our top priority is to ensure that you remain compliant with your tax obligations so that you have the resources you need to move on with your post-divorce life.

How a Divorce Affects Personal Tax Returns

The vast majority of American adults are legally required to file personal tax returns every year. For most married couples, including many who are over the age of 50, filing a joint return offers certain tax advantages. When you get divorced, however, your filing requirements may change, and your personal tax obligations may be affected as well. Depending on the timing of your divorce petition and the complexity of your circumstances, your pending divorce could span one or more tax filing seasons. If your divorce is in motion and the annual tax filing deadline is approaching, our lawyers will help you decide on your best filing option. It might be in your best interest to cooperate with your soon-to-be ex-spouse and to file a joint return, as the tax advantages of doing so may be significant. A similar decision is likely to be necessary for your first post-divorce annual return.

Special Tax Considerations for Older Individuals

As you and your spouse decide how to divide your marital assets and debts, it is important to keep the potential tax consequences in mind. For example, if you wish to keep your family home, you need to consider your liability for property taxes and other related taxes. If you are over the age of 65, however, certain provisions in Illinois law could reduce or defer your property tax liabilities. You should also consider how deductions for mortgage interest or exclusions for capital gains related to the sale of the home might affect your tax obligations.

Our attorneys can also help you manage the tax implications of your retirement investments. In most cases, there are tax benefits to putting money aside in qualifying retirement accounts. The financial effects of your divorce could leave you needing the money in your 401(k) or IRA before retirement age. You might have options for accessing those funds without incurring serious tax penalties, and we can assist you in learning about them.

At Goostree Law Group, we understand that the United States Tax Code can be incredibly confusing, especially for older individuals who have never faced tax issues before. Our knowledgeable team will sit down with you and discuss your current and anticipated post-divorce circumstances so that you can fully understand your potential tax responsibilities. We will do everything we can to help you make the best possible decisions during the divorce process.

Schedule a Free Consultation Today

For more information about the tax consequences of a divorce between spouses over the age of 50, contact our office. Call 630-634-5050 for a free consultation with an experienced member of our team today. Goostree Law Group serves clients in Wheaton, Naperville, Downers Grove, St. Charles, Batavia, Sugar Grove, Elgin, Kane County, DuPage County, Kendall County, and the surrounding areas.