Divorce is always a highly emotional time, and the disposition of property and finances following the divorce can be difficult to agree on. Divorce tax issues are no different than the division of property because taxes involve a major financial transaction which can impact your finances for this year and the years to come. Contact an experienced family law attorney who has experience in both family law and the financial repercussions of divorces who can advise you on what steps to take.
Married couples often file joint returns and claim any children as dependents on their tax returns. During a divorce, important tax issues need to be considered, such as any tax liability both spouses face which may have been offset by the other spouse, and who will claim the child deductions. It is important to take into consideration all tax issues that may affect both spouses during and after the divorce.
Common tax issues that occur during a divorce proceeding include the following:
Tax issues can additionally take the form of a tax consequence that will not impact your taxes for several years. For example, if you retain an asset and sell this asset later, you may be subject to tax consequences of the sale, such as appreciation or depreciation in value of the asset. An experienced family law and tax law attorney will be able to walk you through any outstanding issues related to the division of assets.
Divorce proceedings are rarely ever a walk in the park, and often must be looked at from all angles. Many family law attorneys focus solely on the divorce agreement and any custody arrangements, skipping over important financial information such as related tax issues. However, the division of assets and divorce can drastically affect your income taxes for years to come, and an experienced attorney will be able to guide you through this process.
If you are in the middle of a divorce and are worried about the tax consequences of the disposition of property, do not hesitate to contact experienced family law attorney Ned Gill III. Ned Gill III is experienced in carefully examining Texas and Federal tax code consequences from a divorce and will ensure that your divorce decree is thoroughly reviewed to better prepare you for any looming tax issues.