Year-End Updating a Divorce Decree for Tax & Retirement Changes

Year-End Divorce Planning: Updating Your Settlement for Tax & Retirement Changes

Why Year-End Divorce Planning Matters

As the year comes to a close, newly divorced or divorcing couples often face financial decisions that can impact taxes, retirement accounts, and long-term stability. For Florida families, reviewing settlement terms before year-end divorce planning ensures compliance with state law and prevents unwanted surprises when filing taxes or making financial changes.

Working with an experienced family law attorney can help you update your agreement and protect your interests as financial rules shift.

Understanding Tax Implications After Divorce

Your marital status on December 31 determines how you file your taxes. This affects:

• Standard deductions
• Eligibility for head-of-household status
• Child tax credits
• Reporting alimony (post-2019 divorces are not taxable to the recipient but to the provider alimony is considered income.)

If your settlement includes shared time with children, consult a parenting plan lawyer to ensure tax-dependent language is clear. The IRS only recognizes what the court-ordered plan states.

Retirement Accounts and Year-End Adjustments

Divorced couples often overlook retirement updates, especially when their divorce was finalized mid-year. Florida courts commonly divide retirement assets using a QDRO (Qualified Domestic Relations Order), but mistakes can occur if accounts aren’t correctly updated.

Common Issues That Need Year-End Review

• Beneficiary designations not updated
• QDROs not submitted or processed
• Incorrect percentage splits
• Forgotten accounts (old 401(k)s, pensions, IRAs)
• Market value changes affecting equalization payments

A review with a divorce attorney can help ensure all documentation is accurate and enforceable, moving into the new year.

When to Update Your Divorce Settlement

You may need to modify your agreement if:

• Health insurance coverage changes
• Income or employment shifts
• Child support obligations no longer match childcare or medical expenses
• Your parenting plan doesn’t address upcoming school-yearor holiday schedules

If your parenting plan needs attention, a time-sharing lawyer can assist with modifications that reflect current needs.

Financial Events That Often Trigger Updates

• Salary increases or reductions
• New investments, dividends, or bonuses
• Housing changes (buying, selling, refinancing)
• Significant changes in childcare expenses
• Relocation by either parent

Consider a Year-End Mediation Session

Mediation can help couples resolve financial matters efficiently. It’s often used for:

• Updating budgets
• Reworking time-sharing schedules
• Clarifying tax responsibilities
• Adjusting support amounts

Parents who share time with children during the holidays may especially benefit from reviewing their child custody agreement before the new year begins.

How Gisondo Law Helps Families Prepare for the New Year

Gisondo Law supports families by reviewing:

• Existing settlement agreements
• Tax-related provisions
• Parenting plans
• Support obligations
• QDRO and retirement account division

The firm ensures every update aligns with Florida law and provides peace of mind during year-end planning.

To schedule a free, initial, in-office, consultation, visit the Gisondo Law Contact Page. You can also call the office at 561-530-4568 with questions and to schedule a consultation.