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California Legal Forms--Transaction Guide
Copyright 2016, Matthew Bender & Company, Inc., a member of the LexisNexis Group.

34-125 California Legal Forms--Transaction Guide 125.syn


Provisions for Payment of Income Taxes, Attorneys' Fees, and Costs


Matthew Bender editorial staff; Kathryn Kirkland, Esq., Ira Lurvey, Esq., and Diana Richmond, Esq., Editorial Consultants

Chapter Summary


This chapter discusses provisions intended to be used in marital settlement agreements (MSAs) for the filing of the parties' income tax returns and the payment of their income taxes, as well as for the payment of attorneys' fees and costs incurred by the parties during dissolution proceedings. The chapter's research guide contains the relevant California statutes and court rules, as well as federal statutes and regulations.

The legal background section discusses MSA provisions relating to income taxes, and provides thorough coverage of income tax returns. It explains that parties may agree to the filing of joint and separate income tax returns, payment of prior tax deficiencies, and allocation of tax refunds. With respect to joint returns, the legal background reviews the marriage requirement; the effect of a divorce, separation, or judgment of nullity; joint and several liability for the tax due; innocent spouse relief; and the separate liability election for divorced or separated taxpayers. In addition, it provides details on married taxpayers filing separately and the treatment of separate and community property. The legal background briefly covers the right of certain separated persons to file as head of household.

The legal background also discusses MSA provisions relating to attorneys' fees and costs. It explains that parties may provide for the payment of one spouse's fees and costs by the other spouse, payment by each spouse of his or her own fees and costs, payment by one spouse of fees and costs as additional support, allocation of payment by particular property, encumbrance of community property to secure payment, and payment in future litigation. The section also covers the general rule of nondeductibility of attorneys' fees and the exceptions related to attorneys' fees incurred for the production of income and for tax advice.

The transaction guide provides drafting assistance for provisions for the filing of income tax returns and payment of taxes and provisions for payment of attorneys' fees and costs.

The forms section contains provisions for the payment of income taxes, including provisions for filing a joint income tax return, filing separate income tax returns, the payment of prior tax deficiencies, and the allocation of a tax refund; and provisions for the payment of attorneys' fees and costs, including provisions that allocate payments to one spouse or both spouses and provisions for payment using personal or real property. The forms are intended to be used in conjunction with the complete forms of marital settlement agreements set forth in Chapter 120, Complete Marital Settlement Agreements.

California Legal Forms: Transaction Guide (Matthew Bender) provides step-by-step guidance through all non-litigation business and personal transactions that are likely to arise in day-to-day practice, offering guidance through the drafting and filing of all the requisite forms. Topics include business organizations, real estate transactions, commercial transactions, wills and trust, contracts and obligations, performance of services, and personal transactions (including marital dissolution agreements). Each chapter includes four parts: a Research Guide, Legal Background, Transaction Guide, and Forms.


Marital Settlement Agreement,MSA,Dissolution of Marriage,Divorce,Income Tax,Attorneys' Fees,Costs,Joint Income Tax Return,Joint Return,Separate Income Tax Return,Separate Return,Tax Deficiencies,Tax Refunds,Judgment of Nullity,Joint and Several Liability,Taxpayer,Married Filing Separately,Separate Property,Community Property,Head of Household,Spouse,Spousal Support,Deduction,Deductibility,Production of Income,Tax Advice


For a discussion of agreements for attorneys' fees in general, see Ch. 86A, Agreements for Legal Services.

For a discussion of tax returns, see Ch. 96, Tax Returns, Audits, and Protests.

For forms of agreement concerning property and other matters that may be used by unmarried cohabitants, see Ch. 110, Nonmarital Cohabitation Agreements and Related Transactions.

For a discussion of premarital agreements, see Ch. 111, Premarital Agreements. For a discussion of postnuptial agreements, see Ch. 112, Postnuptial Agreements.

For a discussion of specific alternate provisions, in addition to those in this chapter, designed to be substituted into the complete forms illustrated in Chapter 120, see Ch. 121, Provisions for Division of Property; Ch. 122, Provisions for Division of Employee Benefits; Ch. 123, Spousal and Child Support Provisions; and Ch. 124, Provisions for Child Custody and Visitation.


For further discussion of provisions for the payment of income taxes, attorneys' fees, and costs in marital settlement agreements, see:
  • California Family Law Practice and Procedure, Ch. 61, Attorney Fee Agreements; Ch. 62, Awards of Attorney's Fees in Family Law Proceedings; Ch. 160, Tax Effects of Dissolution; Ch. 211, Complete Marital Settlement Agreements; and Ch. 216, Income Tax, Attorney's Fees, and Related Provisions in Marital Settlement Agreements (Matthew Bender).
  • California Community Property with Tax Analysis, Ch. 10, Property Agreements Between Parties (Matthew Bender).
  • California Family Law Litigation Guide, Unit 34, Trial of Attorney's Fees and Costs (Matthew Bender).
  • Family Law & Practice, Ch. 8, Temporary Counsel Fees and Expert Fees; Ch. 9, Postnuptial Agreements; Ch. 39, Permanent Counsel Fees; and Ch. 41, Tax Considerations: Marital Property Division (Matthew Bender).
  • Valuation and Distribution of Marital Property, Ch. 42, Tax Problems Related to the Division of Marital Property (Matthew Bender).
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