Everyone knows that divorce can be an exceedingly difficult experience economically, emotionally and legally. However, what many Connecticut residents do not realize is how divorce can come with some very serious tax consequences. Indeed, many couples are surprised by the fact that taxes can often be more difficult and more costly following a divorce.
Alimony payments, the property division process and child custody arrangements can complicate the tax filing process. For example, for separated couples who have children, which spouse will be claiming the kids? An Internal Revenue Service Form must be signed by a custodial parent in order for it to be used by a non-custodial parent. However, in order to qualify to claim one's child as a dependent, the child must live with the parent for over half the year and be 18 years of age or younger, among other qualifications. Some Connecticut parents might choose to trade who claims the children as dependents from year to year; however, others may create different arrangements depending on their unique tax situations.