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These Are The Biggest Money Surprises When You Get Divorced

May 06, 2019

Unfortunately, this article is correct.  There are many unforeseen and unexpected financial impacts to a dissolution of a marriage.  You should not only be cautious of capital gains implications when selling a marital home, but if the marital home is being transferred to one party, it is important to do a title search to make sure there are no Judgments and Liens, and the party is truly getting the equity that is believed to be the consideration for the transfer in equitable distribution. 

There should be no tax on the equitable distribution of certain assets, but as this article indicates, depending on cost basis and capital gains, significant tax impact consequence could be incurred.  Another good point that this article makes is the true impact of the cost of children.  Child support, although a statutory creature, only covers room and board, which obviously does not cover the myriad of expenses in raising a child, not to mention how those costs increase as the child ages and the ultimate cost of a college education. 

In addition, now that there is no deduction or tax write-off for maintenance, the tax implications are even greater and more must be considered in negotiating a settlement with respect to the tax implications and impact on the parties. 

It is very important to have a skilled attorney and tax expert review your dissolution so you know exactly what you are getting and the tax implications of your decisions.

Selected excerpt(s), photo and linked article courtesy of Chris Taylor, Considerable.com

Concetta Spirio: A compassionate and aggressive lawyer providing the highest level of legal representation for over 30 years.