Frequently Asked Questions
What are the tax implications of divorce in Illinois?
Major tax considerations include: property transfers between spouses are generally tax-free under IRC 1041, maintenance is no longer deductible (post-2018 TCJA), child support has no tax consequences, and basis in transferred assets carries over. Planning can minimize overall tax burden.
Who claims the children on taxes after divorce?
Generally, the custodial parent (more overnights) claims the dependency exemption and child tax credit. However, parents can agree otherwise using IRS Form 8332. Your parenting agreement should specifically address tax benefits, Head of Household status, and education credits.
How does filing status change during divorce?
Your filing status on December 31 determines your status for the entire year. If still legally married on 12/31, options are Married Filing Jointly, Married Filing Separately, or potentially Head of Household if separated. Coordinate with your attorney and accountant for optimal timing.
Written by Jonathan D. Steele
Chicago divorce attorney with cybersecurity certifications (Security+, ISC2 CC, Google Cybersecurity Professional Certificate). Illinois Super Lawyers Rising Star 2016-2025.
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