During a high asset divorce, or any divorce, there are many financial considerations to address. At Markiewicz Law, we are thorough when evaluating your property. Your decisions during the divorce process significantly impact your future financial stability.
As you divide the marital property, it is crucial to understand how it affects your tax obligations. Taking the time to address the tax implications helps you avoid unexpected debts in the future.
Tax liability issues to consider
Some tax-related matters you may want to look into during your divorce include:
- Property taxes: Be sure you consider the taxes for any assets you will own once the divorce is final. You want to ensure you have enough income to pay the ongoing real estate taxes.
- Business taxes: If you or your spouse own a company, you must determine how the tax liabilities affect the property division.
- Retirement accounts: If 401(k)s or IRA’s transfer between spouses during the divorce, several tax obligations may apply. Professional assistance is valuable to ensure the correct transfer procedures.
- Pensions and other benefits: These retirement plans also require detailed attention to understand the tax implications.
- Capital gains taxes: You need to know what taxes apply to the sale of assets such as stocks or property following a divorce.
Tax concerns related to children
After your divorce is final, only one parent may claim dependent children on their taxes. These tax credits typically go to the custodial parent. It is vital to obtain a child support order that considers your children’s current standard of care, education and living. You may also want to protect their future by addressing taxes related to transferring gifts, inheritance and trust interests.
When you and your spouse have significant assets, the divorce process can be complex, and should not be taken lightly. It is vital to take your time and address assets, debts and taxes to secure your financial future. At Markiewicz Law, we will review these issues with you so that you have a wide open view into your future.