I am going to be upfront about something. In law school, I avoided the building where they taught tax law. I have made peace with that decision. I still do not sleep particularly well in April, but that is another matter.

I am not a tax expert. I am a family law attorney. But every spring, the two worlds collide in my office in ways that matter to real people with real money on the line.

So here is what I know, with the caveat that for the specifics of your return, you need a CPA. What I can tell you is what the family law side of this equation looks like.

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Filing Status: The Question That Trips Everyone Up

Your filing status for any given year is determined by whether you were legally married on December 31 of that year. Not when you separated. Not when you moved out. Not when you stopped talking.

If your divorce was not final by December 31, you were still legally married on that date. That means you file as married, either jointly or separately.

Filing jointly usually produces a lower tax bill. But jointly also means both spouses sign, both spouses are liable, and both spouses need to cooperate. If that is not happening in your household right now, you need to talk to both a tax professional and a family law attorney before you decide.

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Who Claims the Kids

The IRS has its own rules about who gets to claim a dependent, and they do not always match what the parenting plan says. Generally, the custodial parent claims the child. But parents can agree otherwise, and the non-custodial parent can claim the exemption if the custodial parent signs IRS Form 8332.

This is something that should be addressed in your parenting plan or final decree. If it is not in there, you are going to have this argument every single spring. (I have clients who have had it every spring for eight years.)

Sort it out in the settlement. Save yourself the headache.

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What Happens to the Refund

If you filed jointly and there is a refund, that refund belongs to both of you. How you split it is a negotiation, same as everything else in the divorce. If your spouse already cashed it, that is a problem worth bringing up with your attorney.

If you are worried your spouse will intercept a joint refund, you have options. Talk to a tax professional about filing separately, even if it costs more. Sometimes paying a little more in taxes is cheaper than the alternative.

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Alimony Changed in 2019

Under federal law, alimony paid under agreements finalized after December 31, 2018 is no longer deductible for the payer and no longer taxable income for the recipient. This reversed decades of prior tax treatment.

If your divorce is being finalized now, that is the rule you are working under. If you have a pre-2019 agreement, different rules may apply. Flag this for your attorney and your accountant. And yes, that means you need both.

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Lawyer Bill’s Advice

I avoided tax law in law school and I’m comfortable with that choice.

What I am not comfortable with is clients making expensive tax mistakes in their divorce settlements because nobody flagged the issues.

Your filing status, your dependent claims, and your alimony treatment all need to be handled deliberately.

Get a family law attorney and a CPA in the same conversation before you sign anything.

The decisions you make in the settlement affect your tax return for years afterward.

This is not the place to guess.

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If you have questions, reach out to William W. Jones IV at midsouthdivorce.com/ask-lawyer-bill/.

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About the Author: William W. Jones IV is a Memphis family law attorney, Rule 31 Listed Family Mediator, and Super Lawyers selectee every consecutive year from 2014 through 2025. Licensed in Tennessee (BPR 022869) and Mississippi (BPR 100707), he practices at The Jones Law Firm, 5100 Poplar Ave, Suite 708, Memphis, TN 38137. Call (901) 761-5353 or visit midsouthdivorce.com.