Merrill J. Taylor
Splitting up assets can be a significant part of a divorce. From a tax perspective, we need to look at what property each party is receiving and how the financial assets are split. Although we are immediately looking at how your tax returns will look for the next few years, we also have an opportunity for tax planning with retirement plans and real estate.
In looking at the splitting up of assets and transferring property between parties, the first step is to figure out which property will go to each party and the tax effect of that division.
Once we know the property you are receiving, we can start a tax plan based on those assets.
Divorce decrees typically outline tax provisions that need to be followed when preparing tax returns. Sometimes the provisions of those decrees can make preparing tax returns even more complex. Tax returns that are prepared without regard to the divorce decree can carry consequences with both the IRS and the court system.
Taking the time to make sure the divorce decree is followed can save a lot of trouble down the road.