Divorce and Taxes: Costly Mistakes to Avoid

Divorce and taxes can create expensive surprises if you only look at the numbers on the settlement page.In this episode of The Conscious Divorce Podcast (The most trusted Divorce Podcast), Justin Milrad speaks with CPA and tax resolution expert Patrick Wanzer about the tax issues people often miss before, during, and after divorce.They discuss why a 50/50 asset split may not actually be equal after taxes, how filing status can change your outcome, what to know about capital gains on the marital home, how QDROs work, what happens with tax debt, and why IRS issues should be addressed before the divorce agreement is signed.You’ll learn what questions to ask your CPA, attorney, or divorce financial professional so you can make clearer decisions and avoid painful surprises later.Topics covered:00:00 Why a 50/50 divorce split may not be fair after taxes03:47 Why taxes are often ignored in divorce04:32 Why you need 3–5 years of tax returns08:36 Current-year tax projections before mediation11:48 Filing status during divorce14:57 Head of household filing while still married15:58 Child tax credits and parenting schedules19:17 Alimony and child support tax rules22:43 Why not all divorce assets are equal25:37 Thinking in after-tax dollars26:04 QDROs and retirement account transfers28:15 Pensions and divorce29:30 Trusts, estate planning, and divorce31:24 Updating beneficiaries after divorce32:53 529 plans and college savings35:25 Back taxes, unfiled returns, and IRS notices39:17 Why the IRS ignores your divorce agreement39:30 Innocent spouse relief and hidden tax bombs41:23 Divorce tax checklist43:11 IRS identity protection PIN43:41 How to contact Patrick Wanzer44:29 Final lessons on divorce tax strategyBook a free consultation with Justin: www.reclaimandreboot.me/bookingLearn more about Patrick Wanzer: www.breakthroughtaxresolution.com