Divorce Guidance

Divorce Guidance and Resources for Tax Professionals 

Many tax consequences can result from a divorce. For example, alimony, child support, asset splitting, and tax returns are all items that spark questions and tax implications. Additionally, the family CPA is now put in a tough situation. He or she may be asked to provide services to both parties causing a potential conflict of interest.

CPAs need to be familiar with Rule 1.110 in the AICPA Code of Professional Conduct and Circular 230 which has rules that govern conflicts of interest. As a best practice, a CPA should have his or her firm establish a policy in which partners and staff are made aware of potential conflicts of interest, such as issues associated with divorcing clients.

This page provides guidance, practice aids, tools, and educational resources to help you serve your clients that go through a divorce. Resources include valuable articles regarding a CPA conflict of interest, guidance on innocent spouse relief, templates to communicate with your client and/or his or her attorney regarding a divorce, practitioner checklists, and more.

Articles

 

Tools, Templates, and Other Resources

  • Attorney Marketing Letter for Clients Going through a Divorce: Template letter to highlight your skills and promote your services to local attorney(s). Working collaboratively with an attorney is often the best way to serve clients going through a divorce.

  • Quick Reference Guide to Divorce-Related Tax Matters: Document that contains a detailed chart that summarizes many of the tax issues that arise during divorce proceedings and the challenges that may affect family law practitioners. Topics covered in this guide include: filing status, exemptions, mortgage interest, and innocent spouse and separate liability relief. Note: most amounts are shown for the 2014 tax year.
  • Surviving Divorce: How to Protect Yourself: Toolkit that addresses the financial aspects of ending a marriage and provides advice that can help protect a client’s financial future.

  • Divorce Issues Checklist (Word & PDF): Checklist that should be used as a comprehensive planning tool for a divorce.

  • Taxation of Divorce after the American Taxpayer Relief Act: PowerPoint slides handout from a presentation from Steve Siegel. In this presentation, Steve walked members through important tax considerations in a divorce.



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