Call today for a consultation 501-588-4451

Robertson, Oswalt, Nony & AssociatesCall today for a consultation

Robertson, Oswalt, Nony

Due to precautions related to COVID-19, we have expanded our options for remote consultations. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation.


Making a


Difference In Your Life

Family law and the taxman: the IRS and your divorce

On Behalf of | Aug 21, 2014 | Firm News, High Asset Divorce

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.


Here when you need help. Call 501-588-4451 to set up your consultation

Hear From Our Clients

“Our attorney showed an immense amount of care while working quickly, efficiently, and effectively… We are back on track in our lives because of you.”