Divorce Tax Issues
Sorting Out the Government’s Portion of Your Assets and Property
As you and your spouse divvy everything up, you may find that there are tax issues related to your divorce that you have to address, depending on how you divide your assets. If you choose to sell your home now or do so at a later date, you both may be affected by capital gains tax based on how you arranged ownership and sale of the house.
If one or both of you have investments that accrued during the marriage, in some instances an increase in value of these assets during the marriage may be considered marital property, regardless of whether you owned them prior to the marriage. There may be current or future tax consequences regarding stocks, IRAs and other retirement assets that you and your spouse need to deal with. Depending on your situation, we may consult with an actuary to determine the marital portion of the assets in question so we can ensure that you are treated fairly, whichever side you are on.
At Dwire Law Offices, P.A., in Lakeville, Minnesota, our attorney will help you evaluate your financial situation and point out any potential tax issues that may come up now, or in the future. We frequently work with accountants and business valuators when we deal with high asset divorces or divorces where one or both members of the couple own a business, but we strongly recommend that you consult with your own tax professional regarding these issues. We want everything to be settled as much as possible to your advantage, and we don’t want something that was left unfinished to haunt you years later.
Dakota County Divorce Lawyer
It is very easy for asset division issues like these to get out of hand and cause serious arguments between parties. We work closely with you and your spouse, as well as his or her lawyer, to come to a reasonable agreement so that you make the final decision on how your assets are divided and can deal with the tax consequences, instead of having the decision made for you by a judge. Litigation can take a long time and become very expensive. However, if this is the only way to protect your interests, we are not afraid to take your case to trial.