Divorce, even under the best of circumstances, is almost always traumatic. The divorcing spouses have so much to worry about that the tax implications of a separation or divorce may not be on their checklist of discussion topics. Tax professionals will need to be able to help their clients understand and apply tax laws to help them avoid costly tax mistakes.

The purpose of this course is to introduce tax professionals and financial advisors to the federal tax laws as they relate to separated and divorced clients. By using examples we will focus on common problems clients have, beginning with determining their proper filing status and continuing with the tax implications of transferring property from one spouse to the other, how to report alimony and child support payments, dividing employer retirement plans and other tax issues. The course includes SECURE Act 2.0 changes in certain retirement plan rules.

After successfully completing this course, students will be able to:

• given the details of an impending divorce scenario, correctly determine the options available to the taxpayers concerned regarding filing status, exemptions and tax credits
• identify the types of payments that qualify under tax law to be classified as alimony, and the reporting requirements for all taxpayers concerned
• identify the tax implications of the non-recognition rule that allows transfers between spouses and former spouses
• recognize the methods by which retirement plans are divided using a qualified domestic relations order
• correctly apply the use and ownership rules for qualifying for an exclusion of gains upon the sale of the marital home

Tax Year: 2022