During the COVID-19 crisis, we are employing online platforms for dispute resolution.
During the COVID-19 crisis, we are employing online platforms for dispute resolution.
During the COVID-19 crisis, we are exclusively employing online platforms for dispute resolution.
Divorce and taxes are two subjects that are often difficult for people. Divorces are often emotional, messy situations that are fraught with feelings of distrust and betrayal. Taxes are complex and often difficult to understand. Thus, it is no surprise that few people are enthusiastic about considering the impact of taxes in the context of a divorce.
Mediators (as well as family law attorneys) often struggle with properly educating a couple on the financial complexities of their settlements. A failure to consider the tax effects of the settlement during divorce negotiations can have a substantial negative effect on the parties' ability to come to an agreement that is fair and equitable. The tax treatment and impact of potential alimony and child support payments must be considered. The Tax Code provides for certain benefits (non-recognition of tax) on transfers of property incident to a divorce, but these transfers must be planned, and the benefits can be lost if people proceed without the proper guidance. Furthermore, considerations regarding the tax treatment and associated tax basis of transferred property as part of a divorce must be considered. Failure to take these factors into account can result in unexpected tax liability and dissatisfaction with the settlement in the long run.
Especially in cases that concern financial matters, Just Resolutions is here to help clients make the best possible decisions about how to resolve a stressful situation successfully. Most often, within a few hours, clients can arrive at a settlement they are satisfied with—and one that makes financial sense for both parties.
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