
The Hidden Tax Impacts of Divorce in Florida
When you’re in the middle of a divorce, taxes probably aren’t your top concern—and that’s understandable.
But the reality is, a divorce will change your tax situation (sometimes drastically) and you should be prepared. From your filing status and deductions to who gets to claim the kids, these shifts can directly impact your bottom line during tax season.
At Bernstein Law, we help clients avoid the hidden costs of post-divorce taxes in Florida. That means catching the small things before they turn into expensive surprises—and making sure you’re positioned to move forward on solid financial ground.
If you’re recently divorced or in the process, talking with an experienced family law attorney early can help you avoid costly tax mistakes that others only discover when it’s too late.
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Why Filing Status Matters After a Florida Divorce
One of the first things to change after a divorce is how you file your taxes.
Your filing status determines how much you’ll owe—or get back—from the IRS. After a divorce in Florida, you’ll typically choose between filing as Single or, in some cases, Head of Household.
Here’s what matters:
- The IRS uses your marital status as of December 31st to determine your filing status for that entire tax year.
- If your divorce is finalized before December 31st, you can’t file as Married Filing Jointly—even if you were married most of the year.
- Filing as Head of Household may offer better deductions, but only if you meet certain requirements (like having a dependent and covering more than half the household expenses).
Making the wrong choice—or assuming you still qualify for joint filing—can lead to penalties, audits, or missed tax benefits.
At Bernstein Law, we help you understand what status applies and how to file smart after divorce.
Alimony Isn’t Tax-Deductible Anymore—Here’s What That Means
If you’ve been through a divorce in Florida recently—or are in the middle of one—you’ve probably heard that alimony works differently than it used to. And that’s true.
Thanks to the Tax Cuts and Jobs Act (TCJA), alimony agreements finalized on or after January 1, 2019 are no longer tax-deductible for the paying spouse. That means if you’re ordered to pay alimony, you can’t write it off on your taxes.
On the flip side, recipients no longer report alimony as income, so they don’t pay taxes on it either.
This change has had a major impact on how alimony is negotiated in Florida divorces. At Bernstein Law, we walk our clients through these implications during settlement talks—because what may look fair on paper might not be fair after taxes.
Understanding how alimony fits into your full financial picture is key to protecting your future. If you’re considering or finalizing an agreement, make sure you’re working with a divorce lawyer who also understands Florida tax law.
Who Claims the Kids? And Why It Matters
It’s not just about who gets more parenting time—claiming your children as dependents after divorce can significantly affect your finances.
Claiming a dependent on your tax return may make you eligible for valuable benefits like the Child Tax Credit or the Earned Income Tax Credit (EITC). But after divorce, only one parent can claim a child in a given tax year.
So how is that decision made?
- It may be clearly stated in your parenting plan or final judgment.
- If it isn’t, the IRS typically awards the exemption to the parent with primary physical custody.
- If both parents try to claim the same child, the IRS will apply tiebreaker rules, often favoring the parent with whom the child lived most of the year—or the one with the higher adjusted gross income.
This is one area where guessing or “winging it” can backfire. At Bernstein Law, we help clients understand how dependency claims work—and how to make sure their tax filings line up with their court orders.
Property Division Can Trigger Capital Gains Tax Later
Not all assets are created equal—and in divorce, what seems like a fair split on paper can lead to very different outcomes when taxes are factored in.
While property transfers during divorce are generally not taxed at the time, the cost basis of that asset carries over to the spouse who receives it. That means if you later sell that asset—whether it’s a home, investment account, or even a business interest—you could be responsible for capital gains taxes based on the original purchase price, not the current value.
For example, keeping the family home might feel like a win. But if the home has appreciated significantly and you sell it down the line, the tax bill could be substantial.
At Bernstein Law, we help clients understand the real, after-tax value of what they’re receiving in a divorce settlement—not just the face value. That perspective can make all the difference when negotiating terms that truly protect your financial future.
Work With a Lawyer Who Can Coordinate With Your CPA
Divorce is emotional. Taxes are technical. But both matter—and both deserve expert attention.
That’s why Derek Bernstein works directly with CPAs when needed to help clients make informed decisions that align with both their legal rights and financial goals. Whether it’s timing the sale of a marital home, allocating retirement accounts, or clarifying alimony treatment, this kind of professional coordination can lead to smarter settlements.
You shouldn’t have to figure this out alone. At Bernstein Law, we don’t just fight for fair outcomes—we work with your team to ensure nothing slips through the cracks.
If you’re working with a CPA already, we’ll collaborate with them. If not, we’ll help you find someone qualified.
Don’t Let Tax Mistakes Haunt Your Divorce—Call Bernstein Law Today
The tax consequences of divorce aren’t always obvious—but they can be very expensive.
Whether it’s alimony, filing status, property division, or claiming dependents, guessing your way through these decisions can cost you thousands later on.
At Bernstein Law, we don’t leave those details to chance. We help clients across St. Petersburg and Pinellas County understand the full financial impact of divorce, not just the legal outcome. If you’re going through a divorce—or have recently finalized one—now is the time to protect yourself from avoidable tax surprises.
Call Bernstein Law at 727-209-7957 to schedule your consultation and get clear, Florida-specific guidance from a team that knows how to look out for your future.