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Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5241
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
September/October 2025
Understanding Divorce Tax Missteps
Divorce is emotionally challenging and financially complex. One challenging aspect to navigate is the tax implications.
Alimony. For divorces finalized before January 1, 2019, alimony payments are deductible by the payer and taxable to the recipient. For divorces finalized afterward, it's a different story. Alimony recipients aren't taxed on the payments. Nor can the payer deduct them.
Property Division. Even simple property divisions can have tax traps. For instance, consider future tax implications if you're awarded the family home. When you eventually sell it, you could face capital gains taxes on any increase in its value.
Child Support. Child support payments aren't taxable for the recipient nor deductible by the payer. However, who gets to claim the child for tax purposes can be tricky. Usually, the parent with whom the child resides most of the year gets the deduction, but this can be negotiated in your divorce agreement.
Tax Filing Status. If you were still married on December 31 of the tax year, you're probably eligible to file as "married filing jointly," which often results in lower taxes. If your divorce is finalized within the same year, you might need to choose between "single" or "head of household." The latter can offer more favorable tax rates, but you must meet specific requirements. Discussing financial matters openly with your soon-to-be ex can help eliminate confusion. And you'll want to consult with a tax professional to avoid any nasty tax surprises post-divorce.
GE-8047441.1(6/25)(Exp.6/29)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. GE-6572038.1 (4/24)(Exp. 4/26)
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