#divorce
Tax planning for divorce — QDROs, alimony, Section 1041 property transfers, Section 121 home sale exclusion, and filing-status rules for divorcing spouses
IRS Notice CP87A means two returns claimed the same dependent's Social Security number. It is not an audit and not a bill — if you are entitled to the claim, the IRS says do nothing. This guide covers the five qualifying-child tests, the tie-breaker ladder, why a divorce decree loses to overnight counts without a signed Form 8332, the 2025 IP PIN fix for e-file rejections, and when to amend with Form 1040-X.
Divorce mediators should book retainers as a liability until sessions are billed, claim the home-office deduction on genuinely low overhead, and track referral relationships with attorneys and therapists as a real marketing channel.
Business valuation in divorce hinges on separating enterprise goodwill from personal goodwill and active from passive appreciation, using ASA/ABV/CVA-credentialed methods like income, market, and asset approaches.
Section 1041 lets spouses transfer property tax-free during and after divorce, but carryover basis, the six-year window, QDROs, ISO conversions, and post-TCJA alimony rules quietly reshape every settlement. A working guide to what must be fixed before the decree is signed.
Form 8857 lets a spouse seek relief from joint tax liability under IRC Section 6015. This guide walks through the two-year deadline, the three relief categories—traditional, separation, and equitable—and how divorced, separated, or abused taxpayers build a record that survives IRS and Tax Court review.
Innocent spouse relief under IRC Section 6015 lets divorced or separated taxpayers escape joint liability for a spouse's tax misconduct via Form 8857. This guide covers the three types of relief—traditional, separation of liability, and equitable—plus deadlines, evidence requirements, and the common reasons the IRS denies claims.
A practitioner's guide to the tax mechanics of divorce — how a QDRO splits a 401(k) penalty-free, why alimony in agreements executed after 2018 is no longer deductible, how Section 1041 carryover basis can turn a 50/50 settlement into an unequal one, and how the Section 121 home-sale exclusion survives when one spouse moves out.
