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Taxes are a difficult area in divorce situations, and many attorneys consult with tax advisors on these matters. Here, you will be looking at how a party's marital status impacts his/her tax rate. Child support and spousal support are funds that one party receives from the other either during the pendency of the divorce or thereafter. How the IRS treats these payments is a significant consideration. Read the scenario below and answer the following questions too.
Dave and Sarah file for divorce. They have been married for over 10 years and have filed their taxes jointly since getting married. What are the tax consequences they may face upon their divorce? After the divorce, Sarah receives spousal support and child support for their children from Dave. Sarah has to file her tax return. Does she have to claim her spousal support and child support? Can Dave get a deduction for the spousal support and child support that he pays?
Justify your ideas and responses by using appropriate examples and references from Westlaw (including primary sources such as cases, statutes, rules, regulations, etc.), government websites, peer-reviewed legal periodicals (not lawyer blogs), which can be supplemented by law dictionaries or the textbook. This means you need to use more than just your text and legal dictionaries.
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