What Are The Tax Consequences Of Divorce?
Taxes affect nearly every financial transaction, including property division and related matters in divorce.
If you are contemplating divorce, it is important to have an attorney who understands the tax consequences of divorce and who can take measures to minimize the effects of taxation on the value of your assets.
At Koiles Pratt Family Law Group, we always consider taxation when negotiating a property division settlement. We have a firm grasp of the tax issues involved in property transfers and financial transactions, as well as in the valuation of marital property. Our firm will work diligently to help you obtain the best possible property division settlement.
For more information about your divorce case, contact Koiles Pratt Family Law Group.
A Comprehensive View Of Taxation And Divorce
Our firm will carefully examine all financial aspects of your property settlement. Our goal is to obtain the best possible tax-adjusted divorce settlement for you. Examples of tax consequences include:
- Potential capital gains taxes
— If you or your spouse has to sell an asset in satisfaction of a property settlement, that transaction may be subject to capital gains taxes, either long term or short term.
- Real estate transfers
— Retitling a home or other property in the name of the other spouse may be possible as part of a settlement. However, there could be accrued property taxes or liens to be accounted for. If the property is sold, there may be related taxes.
- Business tax credits and liabilities
— If a business or professional practice will be part of a property settlement, that asset may have significant tax credits or liabilities that must be taken into consideration.
— Spousal support is tax-deductible for the payer and taxable to the receiver, but this will soon change.
When necessary, our firm can work with accountants, tax specialists or other financial professionals who can provide insights and advice regarding these matters.