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How Will Divorce Affect Our Taxes?

When determining the division of marital assets during a divorce, you are going to need to think about the tax implications of the divided assets. Houses, businesses, investment accounts, maintenance ”“ there is a lot to think about and without assistance, the task can be highly stressful.

Make Sure Your Bases are Covered

The first step you are going to take is making a list of your marital assets. When doing this, you will want to pay extra attention to a few of them. Investments, for example, may have to be revalued ”“ sometimes many times ”“ during your divorce. You’ll want to consider built-in gains on these investments and how capital gains taxes might affect them. For your businesses, you will want to look not only at how much it is currently worth but also projected earnings.

Young children will also affect your taxes. You will have to decide who gets to claim the child as a dependent ”“ it cannot be both, at least not in the same year. Many couples will alternate years on claiming the dependent children, which comes with tax exemptions. Depending on who provides money for childcare, you might also qualify for dependent care tax credits.

Speak with a Family Law Attorney in Highlands Ranch Today

These are just a couple examples of the many considerations you will need to make when thinking about taxes. Speak with a divorce attorney to receive assistance in handling the complex issue of taxes after divorce. In cases with complicated tax issues, it may be necessary to speak with an attorney who specializes in taxes as well.

Divorce Matters ”“ Denver Family Law Attorneys