5 THINGS YOU NEED TO KNOW ABOUT DIVORCE

One part of the real estate business no one ever thinks about is divorce. We see it often, sometimes in the "heat of the battle" other times you talk to a couple and try to figure out why they are making this decision. They are holding hands and talking about splitting up a household. 1. On Marriage Status, Go by the Calendar Even if your divorce was finalized between Jan. 1 and April 18 this year, you are still officially hitched to your ex-spouse when it comes to filing your 2010 taxes. 2. Splitting the House May Be Harder Than Splitting Up You don't have to pay income taxes on assets that are transferred during a divorce. But if you end up getting the house, you won't be getting it tax-free. 3. Just Because the Kids Spend Time with You — Even Equal Time — Doesn't Make Them Dependents Some couples switch who claims the kids from year to year in order to share the tax benefit, and if you only have one child that's the only option. 4. Alimony Looks Good on Your Tax Return Even better, alimony is an above-the-line deduction, which means you don't have to itemize to get the tax advantage. 5. Child Support Is Always Tax-Neutral While alimony is considered a taxable event, child support is always tax-neutral, meaning it doesn't affect your taxes in any way. For more detail you must read the complete TIME article by clicking here.