Divorce and Taxes: Mortgage Interest and Real Estate Taxes

divorce attorney Jill Duffy

By Jill A. Duffy

Attorney, Cordell & Cordell

During the course of a divorce, it is usually decided who will maintain the marital home after the dust has settled on the divorce decree.

However, if your divorce is finalized midyear or at year’s end, you have paid for mortgage interest and real estate taxes on a home that you may no longer own.

If you have not already determined who will claim the mortgage interest and real estate taxes on the marital home, you should do so now.

Your mortgage company will provide you with a 1098 if you have paid over $600 in mortgage interest. If this is provided to your former spouse, you should request a copy of it.

You may have to work with your former spouse to ensure that you are deducting a combined amount equal to what has been paid. Deducting more than you have actually paid will set off red flags for a future audit.

In most states, monies used for interest and taxes are considered marital funds until the divorce is finalized. You should be entitled to deduct half of what was paid from marital funds.

This information is general in nature and should not be construed as tax advice. You should work with your attorney or tax professional to determine the tax advantages that will work best for your situation.

Read all the articles in our Divorce and Taxes series:

 

Jill A. Duffy is an Associate Attorney in the Troy, Mich., office of Cordell & Cordell. She is licensed to practice in the state of Michigan. Ms. Duffy received her BA in Psychology and Spanish and graduated Magna Cum Laude from Oakland University. She received her Juris Doctor from Michigan State University College of Law and graduated Magna Cum Laude.  

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One comment on “Divorce and Taxes: Mortgage Interest and Real Estate Taxes

    If I’m going through a divorce and jointly own a home with my husband but will be paying half of the property taxes, can I write it off at the end of the year?

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