Going into a divorce with plenty of information about tax implications can be the difference between a fair resolution and a costly mistake.
There are a wide range of issues to consider:
- Tax Treatment of IRAs/401(k)s- Retirement assets will eventually be taxed as income; this can make your IRA a much less attractive asset than a home, for example.
- Dependent Tax Exemption- These critical, valuable assets should be considered carefully.
- Head of Household Status- The benefits of this tax status mean it’s worth it to negotiate this issue.
- Capital Gains Considerations- Whether selling a business or property, the tax burden of the profits on that sale are of vital importance.
- Year of Divorce Tax Filing- Filing jointly or separately is a financial decision with considerable consequences.
- Tax Deductible Alimony- Making sure your alimony payments are deductible requires expertise and attention to detail.
It’s easy to forget to deal with taxes, particularly ones that are in the distant future. A skilled attorney, coupled with a tax professional who knows how to pay attention to detail, can manage your liability and risk and get you the fairest possible result.