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5 Things You Need to Know About Divorce Taxes in Arizona

Divorce Taxes Attorney in Arizona

Obtaining a divorce is a lengthy and emotionally draining process, and with masses of legal and financial information to digest, it’s understandable that you might not know all the ins and outs of divorce taxes. Both before and during marriage, individuals are taxed independently of their spouse; however, income and assets accrued by both members of a couple during their marriage can be subsequent to debate after divorce.

It’s important that you’re aware of all your options when going through a divorce, including knowing everything there is to know about taxes post-divorce. This is where legal professionals come in, and there is no shortage of them in Arizona. Below, you’ll find 5 things you need to know about divorce taxes in Arizona and how Jensen Family Law can support you through your divorce in Arizona.

1. Income received after finalization belongs to the individual who earned it

One of the biggest financial disputes during the divorce process is over marital assets’, which are monetary and property gains accumulated during the marriage. Future income, which is income accrued after one or both members of a couple file for divorce, is often disputed as a marital asset in the divorce court. So, one former spouse is entitled to make a financial claim against income or assets accumulated by the other in their separated future.

However, when it comes to tax, the individual who receives independent income, such as wages or money made from leasing a property, is responsible for paying tax on it. In the case of spousal maintenance, the same applies, but child maintenance payments are non-taxable in Arizona, so you should leave the latter off your tax returns following an established child support settlement after divorce. Essentially, divorced individuals are taxed the same as they were prior to marriage: independently and based solely on their own income.

2. Post-2019, alimony is not taxable or tax-deductible in Arizona

In 2017, alimony was made taxable in Arizona and subsequently treated similarly to other monetary income, like wages. The recipient of spousal maintenance was responsible for paying any tax on their alimony, and this tax was calculated depending on how much the recipient got. When recipients filled out their tax returns, alimony payments were mandated to be added as income, and similarly deducted from the income of the divorcee paying the alimony to their ex-spouse.

However, as of January 1, 2019, alimony is no longer taxable for the recipient, nor tax-deductible for the giver. This change in divorce tax law reversed the established system of spousal maintenance taxation established two years prior, meaning that those mandated to pay are no longer eligible for a tax deduction. The dependent divorcee’ receiving the payments no longer has to add alimony to their tax return, meaning it is still classed as part of the giver’s overall income prior to payment.

3. Tax deductions depend on the individual, not the partnership

Divorcees are independently entitled to tax deductions regardless of their previous married status. For instance, if one ex-spouse has primary custody of the children and receives child maintenance payments, they are not obliged to add this income to their tax returns in Arizona because it is taxed at the source: the income brought in by their ex-partner. Similarly, if one ex-spouse makes regular donations to charitable organizations, they alone are entitled to those tax deductions even if they were donating during the marriage as well.

In Arizona, medical expenses are 100% tax-deductible, so ex-spouses are required to deal with deductions such as those as individuals, regardless of how they dealt with them while they were married. Any joint assets can be disputed and assigned in the divorce court, with subsequent taxation and deductions dependent on those decisions. Divorce requires both individuals to fully separate themselves from their partnership and take independent financial responsibility.

4. Typically, there is no Capital Gains Tax to be paid on property

An individual becomes liable for Capital Gains Tax (CGT) when a property that they are selling has increased in value since they bought it. The amount gained between obtainment and sale is taxable because it is income accrued. Property is considered a marital asset, so it must be transferred between the couple before the end of the tax year.

If community property is agreeably split between the two divorcing parties, there is no CGT to be paid because the situation is deemed no loss, no gain’. CGT is most commonly applied to properties that are sold undervalue, allowing the buyer to benefit from getting a high-price asset for less than it is worth. However, in the case of divorce, CGT is typically not necessary, so long as the couple finalize their divorce and divide assets before the end of the tax year.

5. Your marital status must be reflected in your tax return

If you are going through a divorce in Arizona and aren’t sure of how to declare your marital status on your tax return, it depends on the date that you are filing. If your divorce has not been finalized by December 31, you are still legally married, so you must either file independently as such, or file jointly with your spouse. You should always protect yourself when filing, so consider which option is the most beneficial to your finances, then file independently once your divorce is finalized.

Divorce and Taxes Attorney in Arizona

Located in Arizona, Jensen Family Law is a law firm consisting of experienced attorneys and talented legal professionals, all of whom can offer you support, representation and expert advice on how to navigate a divorce. With over 20 years in business, Jensen Family Law have successfully guided clients through difficult divorces, covering all aspects of the proceedings, including how to handle taxes as a divorcee.

To get a better idea of exactly how Jensen Family Law can help you, get in touch today and schedule a one-hour consultation with an experienced professional. Each case is treated with utmost attention and the aim of offering you optimal support from when you file for divorce to when it is finalized.


Our team of child support lawyers look forward to helping you when you need it most. With over two decades of aggressive child support representation, we will not allow you to be taken advantage of. We believe in making a difference in the lives of our clients and their children.

Call us today and schedule your divorce consultation with one of our Arizona Divorce Attorneys. With offices in MesaChandler, Glendale, Scottsdale, Queen Creek, and Gilbert we are ready to help.


Mesa, AZ – Office

Located in Mesa Arizona, on Val Vista and Southern Avenue. Our Family Law Attorneys and Divorce Lawyers in Mesa AZ have been helping our clients achieve the legal results they are searching for. Our Mesa Law Firm offers Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.

Jensen Family Law in Mesa AZ
3740 E. Southern Ave Suite 210
Mesa, AZ 85206
(480) 999-2321
https://familylawattorneymesaaz.net/mesa

Chandler, AZ – Office

Located On Dobson Road, just North of W. Chandler Blvd, near the 101 Freeway. We have a team of the Best Divorce Lawyers and Family Law Attorneys in Chandler Arizona. Our Chandler Law Firm offers Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.

Jensen Family Law in Chandler AZ
333 N. Dobson Rd #5
Chandler, AZ 85224
(480) 632-2083
https://familylawattorneymesaaz.net/chandler

Gilbert, AZ – Office

Located in South East Gilbert, Near Higley High School on Pecos Road, West of Power Road in the Power Ranch Neighborhood. Our Gilbert Law Firm offers Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.

Jensen Family Law in Gilbert AZ
4365 E. Pecos Rd Suite 138
Gilbert, AZ 85295
(480) 900-2302
https://familylawattorneymesaaz.net/gilbert

Florence, AZ – Office

Located in the Community of Anthem in Florence Arizona, off of Hunt Hwy. Our Florence Law Firm is staffed with family law attorneys that offer Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.

Jensen Family Law in Florence AZ
3281 N. Hunt Hwy Suite 111
Florence, AZ 85132
(480) 632-1120
https://familylawattorneymesaaz.net/florence

Glendale, AZ – Office

Located in Glendale. Our Glendale Law Firm offers Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.

Jensen Family Law in Glendale AZ
7075 West Bell Road Suite 5
Glendale, AZ 85308
(602) 834-8585
https://familylawattorneymesaaz.net/glendale/

Scottsdale, AZ – Office

Our Scottsdale Law Firm offers Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.

Jensen Family Law in Scottsdale AZ
7825 E. Gelding Dr. Suite 102
Scottsdale, AZ 85260
(480) 581-1650
https://familylawattorneymesaaz.net/scottsdale




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Jensen Family Law in Mesa is located on 3740 E Southern Ave Suite 210, 85206 Mesa, Arizona. From Phoenix Sky Harbor International Airport (PHX), Take S 41st St to E Sky Harbor Blvd, then head west on E Sky Harbor Blvd and Use the left lane to take the exit toward S 41st St. Then Turn right onto S 41st St. After that, Continue straight to stay on S 41st St, then Take AZ-202 Loop E, AZ-101 Loop S and US-60 E to S Val Vista Dr in Mesa. Take exit 184 from US-60 E after that Merge onto E Sky Harbor Blvd, then Use the left 2 lanes to merge onto AZ-202 Loop E toward Tempe/Mesa and Use the right 3 lanes to take exit 9 to merge onto AZ-101 Loop S. After that, Use the right 2 lanes to take exit 55A-B to merge onto US-60 E toward Globe, then Take exit 184 for Val Vista Dr. Then Continue on S Val Vista Dr to your destination and Turn left onto S Val Vista Dr. Turn right onto E Southern Ave, then turn left and Destination will be on the right.

We’re open 9 AM – 5 PM Monday – Friday and we are closed on Saturday and Sunday.

For additional questions you can call us at (480) 999-2321 or you can find us on Yelp.