It’s crucial for Texas couples to keep in mind the tax changes that happen after divorce. After the divorce is finalized, the couple will no longer be considered married for that calendar year. If the marriage is annulled, the couple must file amended returns for all the years of the marriage as they are no longer considered married legally.

Certain exemptions and tax credits are no longer available or are only available to one person. Only one parent, usually the custodial parent, may use the dependent exemption for the couple’s children. A noncustodial parent who is claiming the credit instead must include Form 8332 with the tax return. Alimony can be claimed as a deduction but only if it is included in the divorce agreement. The person who receives alimony must pay taxes on it as income. Child support is separate from alimony and is neither tax deductible nor taxable.

The person who got the home can claim the mortgage deduction. Only one parent may use the child tax credit. Couples with more complex taxes may have additional issues.

With a community property state like Texas, assets and debts that are acquired after the marriage are considered shared property although there may be exceptions. For example, if a person receives an inheritance, that may be considered the property of the heir unless the recipient commingled it with marital assets or used it on a shared asset such as home renovations. There may be tax implications for some divisions of property. For example, a qualified domestic relations order is required to divide a 401(k) without penalties.

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