Wednesday, October 12, 2016

Modification of Tax Deductions in Divorce

One party or the other is awarded the income tax deductions at the time of a divorce.  So, can those be modified later?  When the request to transfer a tax exemption is pursuant
to a request to modify a prior decree, a material and adverse change in circumstances must
occur to transfer to one parent a tax exemption that was previously awarded to the other
parent. Peters v. Ridgely, 797 So. 2d 1020, 1024 (¶18) (Miss. Ct. App. 2001). For example,
in Peters, the Mississippi Court of Appeals  affirmed the modification of an original decree transferring tax deductions to the custodial parent following a significant and unexpected increase in medical expenses for minor children coupled with the custodial parent’s need to purchase medical insurance due to the noncustodial parent’s failure to maintain a policy. Id. at 1024-25 (¶20).

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