Illinois Divorce Law...

Illinois Law - May the Court Consider Tax Issues.

The court may consider tax issues both in setting spousal maintenance and in dividing the property.

The tax issues that arise most frequently are:

• Tax that would be paid if securities or mutual funds were sold.
• Tax that would be paid if the family home were sold.
• The deductibility of alimony to the payer and inclusion in income of the recipient.
• The non-deductibility of child support and non-inclusion in income of the recipient.
• The income tax exemption for a child, which sometimes may be given to either parent.

Sections 5/503(d)(12), 5/504

Clabault (1993) 188 Ill.Dec. 799, 249 Ill.App.3d 641, 619 N.E.2d 163 (The court could decide which parent would claim the tax exemption for a child. However, the court could not hold that the alimony payments would be deductible to the husband and taxable to the wife. Although the court may have been correct in its statement of the outcome, the tax effect is a matter of tax law, and it is not for the court to decide.)

Email this page on to a friend.

Disclaimer: We are not giving legal advice. No warranties. We disclaim all legal liability. More...

Click here to go to top Illinois divorce law page.

Click here for the Illinois divorce legal table of contents.