- 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.
Darrell M. Harding provides clients with extensive experience acquired from over 20 years of handling divorce cases.
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They handle my divorce in like 2 months and they took payment arrangements they were amazing I appreciate them
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Mr. Harding was able to get everything I wanted in my case with less than 4 hours notice to be at court as I didn't retain until the day of court. Fantastic lawyer would recommend to anyone in need of an attorney
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For such a difficult subject, Mr. Harding made this as simple as possible. He never pressured me but guided me to make the best decisions for myself and my child. He also encouraged communication between myself and my ex to settle things mo...
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Mr. Harding took his time to answer any questions that I had. Even in my fears, he consistently had a professional, yet confident demeanor that put me at ease. He never pressured me, always encouraged an open communication between myself an...
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Thomas has been absolutely heaven-sent in my family law case. He has gone above and beyond and is quick to answer any questions that I have whether it be by email, phone call, or in person. I have recommended him to several of my friends an...
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