Taxes Can Be An Unpleasant Surprise During Divorce
The nuances of state and federal tax laws can be a costly and unpleasant surprise when you start the process of terminating a marriage. No matter when you decide to divorce or dissolve the relationship, you will be discussing taxes. These considerations can have a tremendous impact on your child or spousal support and how property is divided between you and your spouse. With the enactment of substantial changes in the federal tax law and with the implementation of new child support laws in Ohio, it is more critical than ever that you understand those new laws and how they can affect you, your division of assets and the determination of support.
At Barbara J. Howard Co., L.P.A., our lawyers set the standard for creative legal solutions tailored to your specific needs. We can help you carefully consider your options, and avoid divorce and tax issues before they become an issue.
Complex Asset Clients And Tax Matters
The transfer of property to your spouse as part of the resolution of your property division is not considered a taxable event under federal tax law, so long as the paperwork and the transfer are done correctly. In these situations, the taxes are deferred until the recipient spouse disposes of the asset.
However, one spouse will often owe the other a cash or property payment to equalize the overall asset and debt division. This can be especially complex if you have multiple homes or significant investments with differing tax bases. We are experienced in handling the most complex property issues and advising you about the tax consequences of the different options for dividing marital property.
Many tax considerations are easy to miss unless your attorney has significant knowledge about tax issues. Our skilled team can help you consider tax elements that may save you thousands of dollars in both the short and long term. Our goal is always to minimize your tax obligations and maximize your ability to take advantage of tax savings.
New laws have changed how taxes associated with spousal support are handled from an income perspective. We can help you understand how this will impact your specific financial situation.
Business And Income Taxes
We can help you understand how capital gains tax and income tax will be treated in your case. If you do not wish to have your asset division determined by a court, we can help you create a unique solution through traditional negotiation, mediation or collaborative law — with the goal of helping you navigate avoidable tax issues. Our team will always stay focused on your best interest.