If you're going through a divorce or thinking about one, I've got news for you: your divorce decree doesn't override federal tax law, no matter what it says.

That rental property buyout you negotiated. You could be getting screwed on the tax basis. And that division of your ex's 401(k)? There's a one-time penalty-free distribution opportunity that most people miss because nobody tells them about it.

In this episode, I'm covering the frequently asked tax questions I get from clients and prospective clients going through divorce—from filing status rules that actually matter, to rental property tax nightmares, to who gets to claim the student in college. Some of this is basic and applies to everyone, while some of it's rather nuanced, but all of it can cost you real money if you don't understand.

More specifically, Cameron discusses:

• How do I file my taxes in the year I get divorced?
• Is Alimony or Spousal Support taxed?
• Can I deduct legal fees paid during a divorce?
• What happens to a retirement account like a 401(k) or IRA in a divorce? Do those get taxed if transferred to my ex?
• What happens with Health Savings Accounts (HSAs) during divorce?
• After a divorce, who gets any capital losses we have that we have been carrying forward to offset our capital gains and income?
• What are the tax implications of buying out your ex's share in an investment property?
• Who gets to claim our student in college?

Key Moments:

(00:00) Introduction to Divorce Tax Questions

(02:47) Filing Status and Suspended Divorce

(07:27) Married, Filing Separate, or Head of Household?

(09:19) Alimony and Legal Fees

(11:34) Retirement Account Transfers

(15:10) Health Savings Accounts and Capital Losses

(17:36) Rental Property Buyouts & Basis

(24:24) Claiming Dependents and Tax Credits

Resources:

• Get Show Notes Here
• Retired-ish Newsletter Sign-Up
• See if you're a good fit for our Free Tax-Optimized Retirement Playbook™