Will the settlement be taxed? 2 Answers as of September 07, 2010

My wife and I are going through our divorce settlement. If my wife is supposed to receive a large portion of money through our divorce settlement, will that money be taxed?

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E. Ray Critchett, Zaino & Humphrey, LPA
E. Ray Critchett, Zaino & Humphrey, LPA | Ray Critchett
While you may be tired of paying for legal fees, you should consider scheduling an appointment with a tax attorney and/or your CPA prior to finalizing your divorce agreement. Whether it is alimony, child support, receiving marital property, the transfer of benefits, or lump sum settlement payments, each aspect of a divorce agreement can have very different tax implications.

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Answer Applies to: Ohio
Replied: 9/7/2010
Law Offices of James C. Bechler, A.P.C.
Law Offices of James C. Bechler, A.P.C. | James Bechler
It depend on how the settlement is structured. Ideally, you will have a divorce attorney who is also familiar with tax law.
Answer Applies to: California
Replied: 8/22/2010
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