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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
September/October 2025
Understanding Divorce Tax Missteps
Divorce is emotionally challenging and financially complex. One challenging aspect to navigate is the tax implications.
Alimony. For divorces finalized before January 1, 2019, alimony payments are deductible by the payer and taxable to the recipient. For divorces finalized afterward, it's a different story. Alimony recipients aren't taxed on the payments. Nor can the payer deduct them.
Property Division. Even simple property divisions can have tax traps. For instance, consider future tax implications if you're awarded the family home. When you eventually sell it, you could face capital gains taxes on any increase in its value.
Child Support. Child support payments aren't taxable for the recipient nor deductible by the payer. However, who gets to claim the child for tax purposes can be tricky. Usually, the parent with whom the child resides most of the year gets the deduction, but this can be negotiated in your divorce agreement.
Tax Filing Status. If you were still married on December 31 of the tax year, you're probably eligible to file as "married filing jointly," which often results in lower taxes. If your divorce is finalized within the same year, you might need to choose between "single" or "head of household." The latter can offer more favorable tax rates, but you must meet specific requirements. Discussing financial matters openly with your soon-to-be ex can help eliminate confusion. And you'll want to consult with a tax professional to avoid any nasty tax surprises post-divorce.
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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