Understanding Tax Concerns After Your Divorce
Last updated on February 13, 2024
As you and your spouse divvy everything up during the divorce process, 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. At Dwire Law Offices, 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. With decades of experience assisting clients in Apple Valley, Burnsville, Eagan, Lakeville, Prior Lake, Savage and Shakopee.
Protecting Your Financial Future
If one or both of you have investments that accrued during the marriage, in some instances an increase in the 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.
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.
Schedule A Free Consultation Today
The divorce and property division process can be overwhelming, and many people do not think about the tax implications of their decisions. Working with an experienced divorce attorney can help ensure that your settlement takes your best interests into account. To schedule a free consultation, call us at 952-232-0179 or complete our online contact form. From our office in Lakeville, we can assist clients in Scott, Dakota and Rice counties.