Legal Question in Family Law in Utah

Tax Exemption ''Buyout'' - Need help ASAP!

This is my first year to be able to claim my daughter on my taxes. I am current on child support and other bills for my daughter. In our Court agreement we signed (finally) last year the language was put in reading ''That either party may have the option of purchasing the exemption from the other party if the exemption is more valuable to one party than the other and that we will cooperate in exchanging tax information upon the request of the other party to determine who the exemption is more valuable. I understand that I cant claim half and she cant claim half I either have to claim the child or she has to claim the child. So considering its my year, how would this ''buyout'' work; especially to my benifit?


Asked on 11/12/08, 4:39 pm

1 Answer from Attorneys
Cory Wall Cory R. Wall, Attorney at Law, P.C.

Re: Tax Exemption ''Buyout'' - Need help ASAP!

You have to calculate your taxes both ways, with and without the exemption, to see how much of a tax benefit you will derive by claiming your daughter. Your ex should do the same thing. By "purchasing" the exemption from the other party, an individual has to decide whether it's worth it to pay to the other party what that party would lose by not having the exemption. For example, if your ex would lose a $500 tax benefit by not claiming your daughter and you would gain, say, $1000.00, by claiming her, then it might be worth it to you to pay your ex the $500 for you to get a net tax benefit of $500.00. I hope that makes sense.

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Answered on 11/18/08, 11:17 am


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