Divorce and Tax Considerations

April 15th may have come and gone but as they always say, taxes are forever. This become even more important during divorce proceedings, where everything can seem as though it is influx. It’s crucial to remain prudent at this time. Even minor mistakes in property division can have disastrous implications that can be impossible to reverse down the line.

Here are a couple important things to consider:

THE DIVISION OF MARITAL ASSETS

Often this is the most important and fought over facet of divorce proceedings, especially among those who may have accumulated a bit of wealth. How can we adequately assess who is supposed to get what? Especially if a couple has been together for a long while and are forced to split everything up.  Any property that is obtained during the marriage is legally classified as “marital property.” The was the assets are divided is only different when it comes to the logistics of the divorce.

SEPARATION AGREEMENT AND DIVORCE DECREE

If both parties present their separation agreement to the court and the court issues a decree dissolving the marriage, the court may incorporate the agreement in the divorce decree, usually referred to as a merger.

FULL DISCLOSURE REQUIRED TO DIVIDE MARITAL ASSETS

Be prepared to reveal all necessary information if you are planning to go through a division of property.