Last updated Feb 19, 2025

Divorce and Taxes Part I – Four Things to Think About

Written by Tara Wrighton

Divorce and Taxes Like Sucking on a LemonThereโ€™s an old saying that only two things are certain – death and taxes. Thinking about both is usually about as unpleasant as sucking a lemon. Tax consequences of divorce are also a certainty, and can be equally as sour. Unpleasant as it may be, divorce and taxes go hand in hand. That means tax consequences of divorceย are a key component to consider when mediating or negotiating your divorce settlement.

In this series weโ€™ll look at some of the key tax issues to think about during your divorce. Having some information going into the process can help gain the clarity you need to have informed conversations with your attorney and your CPA to help them protect your interests.

Your divorce dream team

If you have substantial assets, your divorce dream team should have both substantial legal and financial knowledge. An expert team will give you the best chance of minimizing the negative tax consequences of divorce.

Your team should include an experienced divorce attorney, like ours at Hightower Reff, as well as a tax attorney or an experienced CPA.

When you choose collaborative divorce instead of traditional divorce, a financial expert is routinely a member of your collaborative divorce team, and can help with planning for your divorce and taxes.

First steps – filing status and figuring out a plan

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For more on filing status and divorce, see IRS publication 504.

Watch for Divorce and Taxes Part II

Next time in the series, in Part II, we look at possible support payment tax pitfalls you may not have pondered when it comes to paying or receiving spousal support or child support.

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts.ย 


Author, Hightower Reff ย Partner Attorneyย Tracy Hightower, holds both a Juris Doctor andย  a Master of Laws in Taxation. For more about Tracy,ย visit her profile page.ย 

If you need help with an Omaha area divorce or other Omaha family law case,ย contact Hightower Reff Law todayย and come visit with one of the attorneys at the Omaha office.ย 

Tara Wrighton

About the Author

Tara Wrighton

Tara Wrighton is a senior associate attorney at Hightower Reff Law who practices family law and worker's compensation. Tara assists clients in cases involving asset and property division, child custody and support, divorce (both collaborative and uncontested), mediation, protection orders, and paternity and parental rights.

In addition to Taraโ€™s role at Hightower Reff, she holds active memberships in the Phi Delta Phi International Legal Honor Society, the Nebraska and Iowa Bar Associations, and the Nebraska Association of Trial Attorneys. Tara was named to the 2022-2023 Nebraska Bar Leadership Academy.

Before graduating cum laude at Creighton University School of Law, she worked for three years as a mental health and substance abuse clinician. Afterwards, she worked for the State of Nebraska Department of Health and Human Services in child protection. Tara also gained experience as a law clerk to the Honorable Leigh Ann Retelsdorf, a Judge of the Nebraska Douglas County District Court.

In her downtime, Tara spends quality time with her two kids, hosts, cooks, and travels whenever she can.

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