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How Do Taxes Work when You Divorce?

Frequently Asked Questions

What is an initial consultation consist of?

An initial consultation consists of a meeting between you and a divorce attorney to discuss the details of your case, gather information, understand your goals, and provide you with an overview of the divorce process.

Can legal fees incurred after the divorce is finalized still be tax-deductible?

Yes, legal fees incurred after the divorce is finalized may still be tax-deductible if they are related to tax advice or planning, property division, alimony, child support, or other tax-related aspects of the divorce. It is important to consult with a tax professional to determine the deductibility based on your specific circumstances.

Can legal fees incurred for property settlement negotiations be tax-deductible?

Generally, legal fees incurred for property settlement negotiations are not tax-deductible. The IRS considers these fees to be personal expenses. However, there may be exceptions if the legal fees are primarily for tax advice or planning related to the property settlement. It is advisable to consult with a tax professional for specific guidance.

Is there any documentation required to substantiate the deductibility of legal fees?

Yes, documentation is required to substantiate the deductibility of legal fees. It is important to maintain proper records, such as invoices, receipts, and any written agreements or court orders related to the legal fees. These documents will help support your claim for tax deductions in case of an audit.

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