It is no secret that divorces can quickly become expensive and may strain your family financially. Many people wonder, are divorce attorney fees deductible? When it comes to deducting legal fees associated with your divorce, the IRS is not so open minded. Listed below are some general rules that may help you to understand your tax deduction potential:
Nondeductible Costs in Divorce
The IRS does not allow for any deductions that apply to the expenses of personal advice, legal advice, marriage counseling, mediation, or legal action in a divorce case. This means, no write-offs for what one spouse may spend in order to resist the other spouse’s attempts to receive high alimony or to put aside a prenuptial asset agreement, for divorce counseling, for attorney fees, or other expenses. Working with an experienced divorce attorney or mediator who is able to work quickly and efficiently is your best bet at managing these fees and keeping them from getting out of hand.
Fees For Alimony in Galveston TX
If one party seeks alimony from the other, the portion of legal fees that pertain specifically to collect alimony that is taxed can be included. This is much like the cost of preparing a return, with all itemized deductions. This is available for the proceeding that procures taxable alimony, as well as for any associated proceedings that are in relation to amending this agreement or collecting it.
Fees For Tax Advice in Divorce
Couples will be able to deduct the fees that are incurred while doing tax research and advice for things such as property transfers and dependency exemptions for any potential children that come from the marriage. This however must be proven reasonable and clearly documented. There is no tax deduction available for payment of your spouse’s legal fees. This deduction is only granted for advice you receive pertaining directly to your own tax concerns, questions, and problems.
If you have made the difficult decision that you are ready to file for a divorce working with an experienced divorce attorney, such as Dawn Renken, can help make the process easier. Contact the Renken Law Firm today to learn more about our divorce services and how we can help you start the divorce process as soon as possible.
Galveston TX Divorce Services
Renken Law Firm is here to help couples who wish to dissolve their marriage, whether that be through divorce or legal separation. We are here to help those who are ending marriages that have been contested, uncontested, or collaborative. We are fully prepared to help you navigate the specifics of your case. We proudly serve the Greater Houston area, including but not limited to Brazos County, Cypress, Fort Bend County, Galveston, Houston Heights, Houston, Humble, Katy, Kingwood, Memorial Houston, Montgomery County, Montrose, Richmond, Rosenberg, Spring, The Woodlands. All marriages are different, making each divorce equally unique with its own set of needs that must be addressed. Contact our law office to explore your options moving forward, and find out how we can help you.
Renken Law Firm, PLLC
11500 Northwest Fwy #618
Houston, TX 77092