What Are The Tax Consequences Of Divorce?

Taxes affect nearly every financial transaction, including property division and related matters in divorce.

If you are contemplating divorce, it is important to have an attorney who understands the tax consequences of divorce and who can take measures to minimize the effects of taxation on the value of your assets.

At Koiles Pratt Family Law Group, we always consider taxation when negotiating a property division settlement. We have a firm grasp of the tax issues involved in property transfers and financial transactions, as well as in the valuation of marital property. Our firm will work diligently to help you obtain the best possible property division settlement.

For more information about your divorce case, contact Koiles Pratt Family Law Group.

A Comprehensive View Of Taxation And Divorce

Our firm will carefully examine all financial aspects of your property settlement. Our goal is to obtain the best possible tax-adjusted divorce settlement for you. Examples of tax consequences include:

  • Potential capital gains taxes
     If you or your spouse has to sell an asset in satisfaction of a property settlement, that transaction may be subject to capital gains taxes, either long term or short term.
  • Real estate transfers
     Retitling a home or other property in the name of the other spouse may be possible as part of a settlement. However, there could be accrued property taxes or liens to be accounted for. If the property is sold, there may be related taxes.
  • Business tax credits and liabilities
     If a business or professional practice will be part of a property settlement, that asset may have significant tax credits or liabilities that must be taken into consideration.
  • Alimony
     Spousal support is tax-deductible for the payer and taxable to the receiver, but this will soon change.

When necessary, our firm can work with accountants, tax specialists or other financial professionals who can provide insights and advice regarding these matters.

Contact A Lawyer

Contact Koiles Pratt Family Law Group, in Salem, Massachusetts, for a case assessment about a divorce or property division matter. Email an attorney or call 978-744-7774.

Ready to protect your interests, assets and relationships.

Please contact us to discuss your family legal matters by calling 978-744-7774 or using the form below.

Fields marked with an * are required

    Salem Law Office

    70 Washington Street, Suite 210
    Salem, MA 01970