Tax consequences of divorce: Alimony recipients & tax withholding

If you are awarded alimony as part of a divorce settlement or divorce final judgment, typically these monies are not subject to tax withholding. Therefore, there may be a resulting tax liability, which should be looked at by a tax advisor so you are fully aware and prepared to pay the liability. 

Also, due to your status changing from married to single, a tax advisor can adequately inform you of the benefits/or loss of benefits that occurs due to the change in filing status from married to individual or single.

A tax professional can assist you with filling out a new W-4, if necessary. This form instructs your employer to withhold federal income tax from your pay, which may differ post-divorce due to the new status of becoming single.

This blog post is not intended to provide readers with legal advice or tax advice in any way. This does not create a legal relationship or agreement between the reader and Bouchard Law, P.A. Bouchard Law, P.A. and its attorneys and staff do not claim to be experts in tax matters.  Bouchard Law, P.A. recommends consulting a tax professional to fully evaluate your tax implications and consequences of your particular position.