What are the tax implications of a divorce?

In South Carolina, when it comes to the tax implications of a divorce, there are a few things to keep in mind. First and foremost, it’s important to understand that taxes are generally paid on a joint basis for married couples. This means that both spouses would be liable for any taxes that are due, regardless of who accrued the income. In the event of a divorce, the marital assets will be divided between the two parties, with each spouse liable for taxes on any income they receive from the division. This could include alimony payments, the sale of real estate, investments, or other assets. In addition, if any party was issued a tax refund prior to the divorce, the refund will need to be divided between the two spouses according to the rules of the divorce settlement. It’s also important to note that when a divorce is finalized, a taxpayer is no longer able to claim the other as a dependent or a qualifying child. This may result in a higher tax burden for the one paying support. Taxes can be a tricky business, so it’s recommended that anyone undergoing a divorce consult a qualified accountant or tax professional to ensure that the proper steps are taken to minimize any potential tax liabilities.

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What are the tax implications of a divorce?

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