What are Some Possible Tax Consequences of Divorce?
- posted: May 29, 2014
By working with a Norfolk divorce attorney in conjunction with your tax accountant, you can be aware of options that minimize the tax consequences of divorce.
Capital gains taxes, income taxes and the tax consequences of alimony are the main factors to consider. Property division often involves the sale of stocks and real estate. By subtracting the original price paid for your asset from the fair market price, you can determine the asset's capital gain. A stock purchased at $50 that is now worth $75 has a capital gain of $25. The Virginia capital gains tax rates for 2013 are 5.8 percent, and the combined federal and state long-term capital gains rate is 28.5 percent. When you receive property through a settlement that has substantial capital gains compared with property that your spouse receives of equal value but with insignificant capital gains, the distribution may not be fair. As for real estate capital gains, federal capital gains tax allows an exclusion of $250,000 per individual owner on the sale of the home when the couple has lived in the home for two years prior to the sale. For both couples selling a home, the exclusion is $500,000. If selling your home is part of the divorce settlement and the capital gain is over $250,000, you should consider selling the home prior to filing for divorce. As far as income tax, filing jointly allows you to pay less tax and therefore the timing of your divorce can affect your tax filing.
Norfolk family law attorney can help you consider the tax consequences involved with divorce as part of creating your property division settlement.
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Mr Thomas F. Harding is an Attorney that I admire and very knowledgeable, He started on my case in May of 2019 and still in progress and soon to be over, but when I first went to Mr Harding office I was so afraid to go forward with my divor...
Mr Thomas F. Harding is an Attorney that I admire and very knowledgeable, He started on my case in May of 2019 and still in progress and soon to be over, but when I first went to Mr Harding office I was so afraid to go forward with my divorce because my husband is a mean man and he told me that he wasn't going to let me go, nor was he going anywhere I thought my life was over until Mr Harding explain everything and I knew that he had my best interest at heart and his soft voice gave me reassurance that it will be alright and with his loving secretary Mrs Raquel Knight they work together and I was bless and I thank God for them and I have two new friends now and I will be dropping in to see them occasionally, God bless Mr Thomas F Harding for all that you do for others, A job well done!
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