Untying the Knot: The Taxing Consequences of Marital Dissolution, Part 1
August 26, 2011
by
Robin Lutz, CPA
For couples at the crossroads of divorce, financial matters become a large and often dominating part of negotiations. Despite the intense focus on money matters, a few significant financial issues can easily get overlooked.
One such matter is the tax implications that follow divorce. Without proper planning, those consequences may cause more anguish than the divorce itself.
Couples and their attorneys should fully understand the “taxing consequences” that follow marital dissolution. It’s an important consideration when dividing assets and ensuring couples will have enough cash to cover those consequences.
Here are some examples of common assets that are often divided between spouses and other financial factors typically addressed during divorce, along with important tax consequences inherent in each. Also included are insightful tips to help you better prepare your clients for fair negotiations.
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Length: 2 pages (PDF 87 kB)