Despite the status of the law on the issue of alimony, clarify in your separation agreement or order amounts of alimony and child support.
Keep records of all support payments made or received (whether paid directly to a provider, to the other person or for the benefit of the other person).
🏠 Property & Real Estate
Determine treatment of marital residence if:
The home is sold, transferred or if one party buys out the other.
Understand capital gains rules for a sale.
Determine who will claim mortgage interest/property taxes prior to/until time of sale/transfer.
Determine if there is a credit for any payments made towards the principal amount of the mortgage.
Determine if there were any upfits made to the home since separation and prior to division of the asset.
Document any property transfers (e.g., deed, agreement, etc.).
Additional real estate investments? Similar checklists as above, but there are additional items that will need to be considered.
Business owners? Similar checklists as above, but additional items that will need to be considered.
👶 Children & Dependents
Determine custodial parent (important for tax credits and FAFSA).
Decide who will:
Claim Child Tax Credit
Use Dependent Care Credit
Claim Earned Income Credit (if eligible)
Complete IRS Form 8332 if non-custodial parent will claim the child.
💼 Retirement Accounts and Other Investments
Divide retirement assets properly:
Use a QDRO for 401(k) or other qualified plans.
Ensure IRA transfers are properly documented.
Avoid early withdrawal penalties by following IRS rules.
Ensure beneficiaries are updated.
Divide investment assets properly keeping in mind contributions, gains and losses.
💵 Taxes Owed or Refunds
If filing jointly:
Determine in your agreement how refunds or tax bills will be paid.
Include an indemnification clause in your agreement.
Adjust your withholding (submit a new W-4) to your employer.
🧾 Other Financial Considerations
Notify your tax preparer of:
Legal fees (in the event a deduction is available).
