People who think of divorce often consider the financial impact that property division and the cost of the split will have on them. What some might not realize is that there are also tax matters that have to be considered when they go through a divorce.
There are several things that you have to think about when you’re trying to decide how matters like property division, alimony, and child support are handled. You should know how taxes in your situation will be handled so you can make decisions during your case.
How do taxes relate to the property division process?
During the property division process, you have to think about capital gains taxes and how the structure of things like the sale of the marital home would impact that. Retirement accounts also have special considerations when it comes to taxes. It’s best to consult with someone who’s familiar with the most current tax laws so you can find out what arrangement is best for you.
How do taxes relate to child support and alimony?
Alimony and child support have their own tax laws. Sometimes, the term “family support” is used during the divorce. This is a completely different matter than child support or alimony. You should learn about how the terms of your divorce will affect your tax liabilities.
Understanding how all aspects of the divorce will impact your financial future is important. Your divorce team can help you to determine this. The information can help you to make decisions about each aspect of the end of your marriage so be sure to find out as soon as you can.