In most divorces, tax issues are a secondary interest of the parties involved. In complex divorces and high net worth divorces, taxation is at the forefront for both sides, who do not wish to see their net assets undermined by taxes.
Too often, individuals emerge from divorce feeling that they made a successful transition to a new life, only to be shocked by disadvantageous tax surprises. A skilled division of property, mindful of these tax consequences, can retain maximum asset value for both sides. Consider just a few of the opportunities we address at Shulman Family Law Group:
Minimizing capital gains on the liquidation of investments
Optimizing taxes arising from the sale of the marital home
Conducting astute QDROs to divide retirements and pension funds
Dividing dependent child exemptions between both parties
Minimizing IRS alimony recapture
Comparing joint vs. separate filing status for the year of the divorce
The fact is that it is harder to hide funds and other property today than in former times. The detective work we do is effective in unearthing hidden assets, but we accomplish it using ordinary data mining tools, and with the input of skilled forensic accountants, business valuation experts and tax specialists.
Those who intentionally set out to deceive the court, by hiding or dissipating assets, may discover that their actions have crossed the line from mischief to criminality.
At Shulman Family Law Group, we don’t pretend to be tax lawyers. But our focus on complex divorce has taught us a great deal about conserving capital at every stage of divorce. Our attorneys understand the importance of paying attention to tax considerations during the division of complex marital assets.