Alimony

Alimony, also known as spousal support, may factor into how much your divorce is going to cost. This can vary from state to state, but in most cases, the factors that affect how much you have to pay are the same and include expenses, earning expectations, and whether or not both parties will be able to maintain their current standard of limit due to the payments.

In the past, alimony was a taxable income for the payees and tax-deductible for payers, but not anymore.

Capital Gains Taxes

It’s a tale as old as time! It’s pretty common for one of the former partners to stay in the family house with the children after a divorce. After a short period, you may feel the need to downsize.

If you do, make sure that you’ve lived there for the past five years. Why? If you start a sale before that you’ll have to pay huge capital gains on up to a profit of $250,000. The IRS will need proof of any divorce-related housing arrangements, so make sure to prepare them in due time in order to avoid this massive financial hit.