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Stimulus Payments During a Divorce

Many people are debating how stimulus payments should be allocated between parents who are separated.  While the IRS may have guidelines on where the money is sent a family court can order the money divided or redirected regardless of which party has it deposited in their account.  This law is changing and developing so it’s important to be up to date on how courts are viewing these issues.  This also provides a good reminder that it’s important to talk with your attorney on how to structure a divorce settlement to minimize taxes.  Many people do not think about tax consequences when getting divorced but they can have big financial consequences.

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    Q: What is a divorce?

    A: A divorce is the legal termination of marriage. All states require a spouse to identify a legal reason for requesting a divorce when filing the divorce papers with the court. The reasons given when filing are referred to as the grounds for divorce.

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