Many times, parties who are divorcing to do not take into consideration hidden tax obligations.
For example, a spouse may wish to purchase a home after the divorce or dissolution of marriage is final and intends to use the sale of investments, such as stocks or bonds, for the funds to purchase a home. The spouse may not realize that the sale of the investments may cause a tax obligation for them.
The tax consequences of an award of an asset to a spouse should be taken into consideration when equitably dividing the assets between the spouses. It is also important to consider the “intent” of the disposition of those assets by the spouses.
It’s always best to consult with a CPA or other income tax expert when considering these issues. Your family law attorney can help guide you through this process.
This insight into the law is provided by Michael S. Bailey, Esq. of the law firm of Bailey & Gunderson Co., L.P.A., with offices in Norwood, Western Hills and Anderson Township. Phone: (513) 631-0022.
