Tax Consequence and Divorce
The tax implications of divorce can be immense. Just as divorce drastically impacts both parties’ finances, business interests and other property holdings, so, too, it can change the shape of both parties’ tax liabilities. In cases involving significant assets or high net worth, the tax considerations can be just as prominent as other facets of property division and asset valuation.
Anticipating Tax Implications
Many aspects of divorce can have significant tax consequences, both immediately and in the future.
- Property division can lead to tax liability for capital gains. If a business is involved, its tax liabilities or credits must also be taken into account.
- Alimony (or spousal support) is generally deductible, and the recipient must generally treat it as taxable income.
- Child custody and child support also bring up the related concern of how to allocate child tax credits.
Nobody wants to be blindsided by unforeseen tax burdens down the road. Anticipating and understanding the various tax consequences of divorce is critical for obtaining a successful outcome, whether through settlement or at trial.
Proactive Strategies Rooted In Skill And Experience
At Tangusso Law, a full-service family law boutique in Salem, we guide clients through the many tax issues in divorce cases. Our attorneys understand the nuances of high-asset divorce, and we work diligently to develop proactive strategies for handling the tax implications in such high-stakes cases.
Clients benefit from our wealth of experience and knowledge of family law. We dedicate our practices exclusively to family law and related areas of practice. We partner with trusted tax advisers, accountants and other experts, devoting top-notch attention and analysis to strengthen clients’ cases.
As creative thinkers, our lawyers excel at developing outside-the-box solutions for complex legal problems.
If you have questions or concerns regarding taxes and your divorce, do not hesitate to contact us with questions. We have the experience and legal knowledge you need to get the results you desire.