Murfreesboro Divorce Attorneys Help Clients Understand Tax Implications of a High Asset Divorce
Our attorneys have more than four decades of legal expertise handling high net worth divorce cases
The divorce process is complicated and can be overwhelming. With the added emotional stress of a failed relationship, divorcing couples can frequently pass over important issues. The tax impact of a divorce is among the most commonly overlooked. In high asset divorces, tax implications can be substantial.
At Murfreesboro’s Kidwell, South, Beasley and Haley, our divorce attorneys have developed a niche practice of helping individuals through high asset divorce matters. We ensure that nothing is overlooked and that negative tax impacts are minimized.
Counseling clients in Murfreesboro and beyond through post-divorce changes in tax filing status and child-related exemptions
For couples who filed a joint tax return during marriage, divorce necessitates a change in filing status. A divorce also requires that you and your spouse decide who claims minor children for exemption purposes. Sometimes a divorcing couple sets out a schedule in the settlement agreement for who claims the children as dependents each year. Where such an agreement is not explicitly detailed between couples, custody status and the amount of time each parent spends with the children during the year dictate which spouse can claim the exemption. There are also child care credits that you or your spouse may be able to claim. A Kidwell, South, Beasley and Haley high net worth divorce attorney can help you navigate these complicated financial waters.
Proficient understanding of the tax implications of paying and receiving spousal support
High net worth couples generally have a high standard of living. And it is not uncommon in these relationships for one partner to bring in significantly more income than the other. Where a couple’s earning potential post-divorce is disparate, one spouse may ask for spousal support or alimony. Spousal support has tax implications for both individuals after divorce. Most of the time, the person ordered to pay support can report this amount as a deduction. The person receiving the support, on the other hand, must report the support as income.
Trust us to identify any potential sources of income generated by divorce
In addition to spousal support, there are other potential sources of income that may be produced in the process of dividing marital assets during a divorce.
- Capital gains taxes from selling the marital home or other jointly owned real estate
- Tax penalties from retirement funds that are withdrawn earlier than planned
- Income from the sale of stocks, bonds, and other investments
Perceived as part of the divorce process, people frequently overlook the financial implications of these transfers. Any source of income must be reported for tax purposes. With representation by a Kidwell, South, Beasley and Haley high asset divorce attorney, each and every step in the divorce process is explained in relation to your financial bottom line. Furthermore, you can trust our expert divorce attorneys to leverage Tennessee laws and advocate for you during settlement negotiations, in order to minimize financial loss.
Contact us today for financially savvy high asset divorce representation across Tennessee
Call 615-893-1331 or contact us online to speak with a member of the firm’s high net worth divorce team. Through a free initial consultation, we can begin to develop a strategy that minimizes the tax implications of your divorce.