Tax Issues In Divorce

The tax implications of divorce can be immense. Just as divorce drastically impacts both parties’ finances, business interests and other property holdings, so, too, it can change the shape of both parties’ tax liabilities. In cases involving significant assets or high net worth, the tax considerations can be just as prominent as other facets of property division and asset valuation.

Anticipating Tax Implications

Many aspects of divorce can have significant tax consequences, both immediately and in the future.

  • Property division can lead to tax liability for capital gains. If a business is involved, its tax liabilities or credits must also be taken into account.
  • Alimony (or spousal support) is generally deductible, and the recipient must generally treat it as taxable income.
  • Child custody and child support also bring up the related concern of how to allocate child tax credits.

Nobody wants to be blindsided by unforeseen tax burdens down the road. Anticipating and understanding the various tax consequences of divorce is critical for obtaining a successful outcome, whether through settlement or at trial.

Proactive Strategies Rooted In Skill And Experience

At Tangusso Law, a full-service family law boutique in Salem, we guide clients through the many tax issues in divorce cases. Our attorneys understand the nuances of high-asset divorce, and we work diligently to develop proactive strategies for handling the tax implications in such high-stakes cases.

Clients benefit from our wealth of experience and knowledge of family law. With nearly 40 years of combined experience, our lawyers dedicate their practices exclusively to family law and related areas of practice. We also partner with trusted tax advisers, accountants and other experts, devoting top-notch attention and analysis to strengthen clients’ cases.

As creative thinkers, our lawyers excel at developing outside-the-box solutions for complex legal problems.

For more information about the tax consequences involved in divorce, contact our firm at 617-523-3622.

From our office in Salem, we handle divorce cases throughout eastern Massachusetts.