Legal Expense in a Divorce Can Be Tax Deductible

The issue of the possibility of deductibility of a portion of legal expenses incurred in a divorce is frequently overlooked.
In nearly every matter clients pay their attorneys to provide tax advice related to the possibility of settling or if necessary trying a case. This expenditure is deductible under Internal Revenue Code Section 212(3). You should ask your attorney to provide you with some supporting documentation of what portion of your legal expense may be deductible as tax advice. You should then provide this information to your tax advisor for further analysis and possible use to reduce your tax liability or increase your refund.
The internal Revenue Code also allows for the deduction of legal expenses incurred in the pursuit of Spousal Support/Alimony. The spouse receiving support is permitted to deduct the legal expense of obtaining that support. If your tax advisor confirms that you are permitted to deduct legal expense you had to pay to dispute an Alimony/Spousal Support question, you should ask your attorney to provide you with some documentation to support what portion of your legal expense could have been caused by that dispute. Again, you should consult your tax advisor about this issue.
For more thorough information and advice our attorneys can assist you.

Should you have questions about the deductibility of legal expenses in a Divorce contact the law firm of Damon, Ver Merris, Boyko & Witte, PLC to speak to one of our Grand Rapids Divorce or Family Law Attorneys. We are here to help. – Curtis R. Witte / January 3, 2017

While this posting originates from a law office, none of the contents should, in any way, be considered legal advice. If you have not signed a retention letter describing the legal services to be provided and the amount to be paid for such services, you are not a client of this firm.