Charitable Contributions After Divorce

Divorces in Arizona are often complex and stressful. This is especially true when there are disputes about child custody and the division of assets. Charitable contributions can also become complex during a divorce, and this is because most charitable contributions get made on behalf of the couple while married; however, this is no longer the case when the marriage is dissolved.

While some couples can remain on good terms and continue to donate together, most people want to separate their contributions after a divorce. If you fall into that category, there are ways to stop your divorce from derailing your charitable acts towards the community.

Donate to charities of your choosing

If you donated to organizations of your spouse’s choosing during the marriage, making different choices can help you move forward. Many people change who they donate to after a divorce. Making these types of changes can help you feel more connected to the organizations on your list.

Moreover, branching out to charities aligned with your personal values and interests can deepen your sense of fulfillment in giving back.

Make qualified charitable distributions

If you’re divorcing later in life, you may have retirement accounts to consider. Using these accounts can help you continue your charitable donations after a divorce. That’s especially true with qualified charitable distributions. This type of charity donation lets you donate up to $100,000 from your retirement account without worrying about a tax bill.

By leveraging qualified charitable distributions, you can maintain your charitable giving while optimizing your tax strategy post-divorce. This approach ensures that your donations have a meaningful impact while maximizing financial benefits.

Separate your joint donor-advised funds

estate planning attorneyIf you and your former spouse opened a joint donor-advised funds account (DAF), you can separate that into two new accounts. This type of action lets you maintain your level of charitable contributions without maintaining ties with your former spouse. If you didn’t have a DAF with your ex, you can open a new account for yourself. This type of account lets you take better control of your charitable donations after a divorce.

By establishing separate donor-advised funds or transitioning joint ones into individual accounts, you regain autonomy over your philanthropic endeavors. This allows you to direct your contributions according to your evolving priorities and values, independent of your marital status.

Divorce does not need to interfere with how you give back to the community. Being strategic can aid you in donating how you want and finding enjoyment in those whom you help. By implementing these strategies, you can navigate the complexities of divorce while continuing to make a positive impact through charitable giving.

Navigating charitable contributions amidst the complexities of divorce requires careful planning and strategic decision-making. By implementing the outlined strategies, you can ensure that your philanthropic endeavors remain uninterrupted and aligned with your personal values post-divorce. However, it’s essential to seek guidance from legal professionals specializing in charitable giving and divorce matters. An experienced charitable giving attorney at Pennington Law can provide invaluable insight and assistance tailored to your specific circumstances. With their expertise, you can navigate the legal intricacies efficiently and safeguard your charitable intentions effectively. Don’t hesitate to reach out to Pennington Law to safeguard your philanthropic legacy and make a lasting difference in your community, even in the midst of life’s transitions.

Andre L. Pennington attributes his passion and success as an Arizona estate planning lawyer and licensed financial professional to one thing: wanting to do what’s right for his Family.