If you have a lot of assets at the time that your marriage ends, then it is easy to get into losing many of them to taxes if you are not working with a great family lawyer who knows how to help you protect what your assets. Likewise, if you find yourself giving things to your ex that are taxable, you need to make sure that you are no longer paying taxes on those items. Here are some tax problems that you will want to avoid during a high-asset divorce.
While the most common assets to be transferred during a divorce are the titles to cars and real estate, titles to furniture, collectibles, artwork and a multitude of other things may need to be transferred. When this occurs, you can get a large tax surprise if the asset is not titled in your ex’s name. The most common examples are that the asset was in the name of a business or a trust because these fall outside IRS Statue 1041.
It is important to realize that all assets are not equal during a divorce because of capital gain taxes. For example, the capital gain taxes on stocks and some other types of investments depends on when they were purchased. Therefore, you need to have these evaluated by a professional to make sure that they are divided by the number of stocks that were purchased on a particular date. You also know how the capital gains on land or houses are going to affect your taxes.
Capital losses can be very tricky to determine during a divorce, but it is vital that they do not get overlooked. According to the Internal Revenue Service, they cannot be divided during divorce proceedings. Instead, they stay with the party who ends up with the party who gets the property during divorce proceedings. The difference in the resulting tax bill, however, can be divided during the proceedings.
The way that the tax law is written losses from the current year in a business can be carried over to upcoming tax years. They can also be used to offset taxes paid in previous years, which can result in the government owing you money. If net operating losses are likely to result in refunds, then they should be accounted for when dividing assets.
It can be very difficult to divide assets during a divorce. That is why you need Frank Family Law Practice at your side. These family lawyers in Altamonte Springs, Florida, do only family law. They have years of experience handling high-asset divorce. Give these family lawyers in Altamonte Springs a call today at (407)629-2208 before you end up making costly mistakes. Jennifer Frank works countless hours to make sure that you get what you deserve when choosing to get a divorce.