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How Are Taxes Negotiated in a New York Divorce Mediation? - Juan Luciano · BSPE Legal Marketing Podcast

• 0:00
  How Are Taxes Negotiated in a New York Divorce Mediation?
• 0:03
  When a marriage ends in the Bronx, the financial decisions made at the table can quietly determine how much wealth each spouse actually walks away with after taxes.
• 0:12
  Tax issues in a New York divorce mediation are negotiated much like property and support, with both spouses writing mutually agreed terms directly into their final settlement agreement.
• 0:23
  The five core tax categories at the center of most mediated divorces are filing status, child dependency claims, spousal maintenance treatment, capital gains on transferred property, and retirement account division.
• 0:34
  One of the most valuable aspects of mediation is that parties can trade across these categories rather than fighting over each one separately in front of a judge.
• 0:43
  Under Internal Revenue Code Section 152(e), the custodial parent holds the dependency claim by default, though they can release it to the noncustodial parent by signing IRS Form 8332.
• 0:56
  The federal child tax credit currently provides a maximum of $2,200 per qualifying child for the 2025 and 2026 tax years, making this allocation a genuinely significant financial decision.
• 1:10
  Mediating parents frequently resolve dependency claims by alternating years, splitting claims by child, or allowing the higher-earning parent to claim every year while adjusting support terms to compensate.
• 1:21
  Spousal maintenance adds another layer of complexity because federal and New York State law treat these payments in opposite ways for agreements executed after December 31, 2018.
• 1:33
  At the federal level, maintenance payments are neither deductible by the payor nor taxable to the recipient, a rule established by the Tax Cuts and Jobs Act of 2017.
• 1:43
  New York State did not follow the federal repeal, so maintenance under post-2018 agreements remains deductible to the payor and taxable to the recipient under Tax Law Section 612.
• 1:54
  A knowledgeable divorce attorney can help spouses price this state-level benefit into the final maintenance figure so the numbers accurately reflect each party's real financial position.
• 2:05
  Two assets showing the same dollar value on a balance sheet rarely carry the same after-tax value, and mediation gives couples the opportunity to price those differences before finalizing any agreement.
• 2:17
  A $150,000 brokerage account with a low cost basis, for example, holds meaningfully less real value than $150,000 sitting in a simple savings account.
• 2:28
  The law firm coordinates with accountants to analyze tax consequences and draft clear settlement agreements alongside Qualified Domestic Relations Orders that protect both spouses from unexpected obligations.
• 2:40
  Omitting tax provisions from a settlement can create serious financial consequences the following spring, making it essential to address every category clearly within the written agreement.
• 2:51
  Attorney Juan Luciano has practiced family law since 2005 and served as president of the Bronx Family Court Bar Association, bringing deep local knowledge to every mediation.
• 3:01
  The law firm provides mediation services across New York City, helping couples resolve asset division and support negotiations with clarity and long-term financial confidence.
• 3:11
  To speak with a lawyer about how taxes may affect your divorce settlement, contact Juan Luciano Divorce Lawyer - Bronx at 718, 519, 8336, located at 187 E 163rd St, Bronx, NY 10451, United States, and schedule your consultation today.