Watchful eyes are focused on all the relevant matters concerning your Arkansas divorce.
Yours, of course, as well as your soon-to-be former partner’s. And persons providing professional input are certainly scrutinizing every material detail. Your attorney, for example, is safeguarding your legal rights in the dissolution process and carefully promoting your best interests.
That central role played by legal counsel is also marked by your lawyer’s contemplation of another party’s potential interest in your divorce matter, namely, the Internal Revenue Service.
The IRS is a jealous mistress, meaning that it generally pays closest attention to the declarations of taxpayers following divorce that arguably concern the agency.
It is worth thinking about that. In fact, not duly noting the tax authorities’ potential scrutiny of your tax return as it applies to divorce-related entries can ultimately result in an unwelcome reminder of agency power and suddenly assumed tax debt.
Of course, potential IRS issues can be avoided through a bit of focus on tax-related matters during marital dissolution. A family law attorney well experienced in helping clients with property division matters can help point out potential concerns and solutions, as well as make referrals for a client if that is deemed necessary.
It really shouldn’t be surprising that the IRS takes interest in divorce-related tax declarations, as is noted by Kiplinger, a widely read magazine focusing on investments and money matters. The publication notes, for example, that only one parent can claim a child as a dependent following divorce, and that the IRS will duly note who is claiming that right. Other claiming prerogatives regarding children — for example, child credits, learning credits, medical expense deductions and so forth — will also be examined to ensure that double-dipping is not an issue.
And potential IRS scrutiny goes far beyond matters involving just the kids. Kiplinger notes that agency interest can be piqued by home sales (where a threshold level of tax avoidance is allowed), retirement asset transfers from 401(k) and other sheltered accounts, alimony adjustments and additional factors.
An experienced family law attorney well appreciates the tax implications of divorce, especially high-asset divorce matters. In Arkansas, a proven Little Rock high net worth divorce lawyer can answer questions and provide knowledgeable representation to any person seeking divorce guidance.