Divorce Tax Issues Lawyer

Taxes are an important consideration in community property division. When you divide assets such as stocks, retirement accounts and real estate in divorce, you are not just dividing numbers. You have to consider the value of the asset after taxes.

At DeShon Laraye Pullen PLC, in Phoenix, our attorneys are experienced in all aspects of community property division, including taxation. We will work hard to protect your interests when negotiating your marital property settlement. Let us put our experience and knowledge to work for you.

Tax Considerations In Divorce

Tax considerations in divorce are highly particular to your situation, but here are some general guidelines:

  • Property transfers that occur as a result of a marital property division have no tax consequences. For example, if you transfer an asset to your spouse, it is not taxable income for your spouse and it is not tax-deductible for you.
  • Alimony is tax-deductible to the person who pays it and taxable income to the person who receives it. As a result, making alimony payments in lieu of another type of property settlement may have tax advantages. You should discuss your situation with your attorney and accountant.
  • The cost of valuing a business in divorce is a tax write-off.
  • Retirement accounts may face both income taxes and tax penalties if liquidated.
  • Stocks and real estate held a year or longer are taxed as long-term capital gains when sold, which means you pay less in taxes that you would with assets held less than a year.
  • When creating your parenting plan, it's important to consider who will receive the dependent tax exemption. If your parenting plan is not properly written and you and your spouse have 50-50 custody, neither of you may be entitled to the dependent tax exemption.

Contact A Community Property Division Lawyer

For more information, contact a divorce tax issues lawyer at DeShon Laraye Pullen PLC, in Phoenix, Arizona. Call 602-626-9552 or 800-409-0262 to schedule a consultation. We look forward to hearing from you.