Are Divorce Related Attorney’s Fees Tax Deductible?

We often have been asked by our clients how legal fees (including attorney’s fees, accounting fees, and expert fees) in connection with a divorce are treated for tax purposes.  In general, the legal fees and costs related to a divorce are nondeductible personal expenses.  Generally speaking, only business-related expenses, and not personal expenses, are tax deductible for federal income tax purposes.  With careful planning and careful documentation, however, a portion of the fees may be deductible, including fees related to the collection of alimony and fee related to the division of a community property business may be deductible.    While Pecos Law Group does not give tax advice, we urge you to consult with your C.P.A. or tax specialist to determine if any of your attorney’s fees related to your divorce may be deductible.