Legal & Financial Insights from Roach Law, Serving Southeastern PA

As the year comes to a close, separated couples face a complex set of decisions that can significantly impact their financial future—especially when it comes to taxes. End-of-year tax planning is crucial for individuals navigating separation or divorce, and understanding your rights and obligations under Pennsylvania law is essential.

At Roach Law, we help clients throughout Southeastern PA address both the legal and financial implications of separation so they can make informed, confident decisions heading into the new year.

Why Year-End Tax Planning Matters for Separated Couples

Separation changes how you file taxes, how you claim dependents, and how financial responsibilities are divided. Addressing these issues before December 31 can prevent disputes and costly mistakes.

Here are the key areas separated couples should focus on:

1. Filing Status: Married, Single, or Head of Household?

Your marital status as of December 31 determines which filing status you can use.

If you are legally separated or divorced by December 31:
You may file as Single or Head of Household (if you meet IRS requirements).
If you are separated but not legally divorced:
The IRS may require you to file as Married Filing Jointly or Married Filing Separately, unless you qualify for Head of Household status.

How Roach Law Helps:

We review your separation status, Pennsylvania court documentation, and IRS requirements to advise on which filing status you are legally allowed—and strategically wise—to use.

2. Claiming Children as Dependents

For separated couples, one of the most common sources of conflict is who gets to claim the children for tax purposes.

Considerations include:

What does your separation agreement say?
Who has primary physical custody?
Are you using IRS Form 8332 to transfer dependency exemptions?

How Roach Law Helps:

We draft or revise custody agreements and separation agreements to clearly outline dependency claims and avoid disputes at tax time.

3. Child Support vs. Spousal Support

For Pennsylvania couples:

Child support is not taxable or deductible.
Spousal support/alimony may be taxable depending on when the order was finalized (major changes occurred after 2019 under federal tax law).

How Roach Law Helps:

Our attorneys review your existing orders to determine how support payments may impact your tax liability and whether modifications are needed before year-end.

4. Property Division and Asset Transfers

Asset transfers between spouses during separation may have capital gains implications. Likewise, the timing of selling a home or dividing retirement accounts can drastically affect tax outcomes.

How Roach Law Helps:

We work alongside tax professionals to ensure property settlements comply with PA law and minimize unnecessary taxes.

5. Retirement Accounts and QDROs

If retirement accounts are being divided, a properly drafted Qualified Domestic Relations Order (QDRO) is essential to avoid unexpected taxes and penalties.

How Roach Law Helps:

Roach Law prepares and reviews QDROs and ensures retirement division aligns with IRS rules and Pennsylvania marital property laws.

Why Work with Roach Law for End-of-Year Tax-Related Legal Issues?

Roach Law provides comprehensive support for separated couples across Southeastern Pennsylvania, including Delaware County, Montgomery County, Chester County, Bucks County, and Philadelphia.