Queens Divorce Taxes
A Queens divorce taxes attorney can help you if you need to understand the financial implications of an award of equitable distribution of property, a retirement plan or a spousal support.
Given the recent changes that have taken place in the tax law, it is important to retain a Queens divorce tax lawyer who is highly knowledgeable about these issues and one who remains committed to providing you with the most up to date information. Having an attorney who can help walk you through everything in advance of filing for divorce is especially helpful so that you do not make common mistakes that could jeopardize your financial future.
A lawyer who has been practicing in this field for many years can tell you more about what to anticipate and how to avoid common obstacles that are presented to people. You may assume that fighting for as much property or the biggest pieces of property is always in your best interests but you need to carefully consider all the possible impacts of going this route in a divorce trial.
There are tax implications associated with various awards and the biggest financial mistake that many people make in a divorce is not considering the tax impacts of each asset.
Sitting down with a divorce tax lawyer in Queens, however, will help you understand what you need to fight for. For instance, receiving an IRA is not the same as getting an award of cash, particularly if you'll need to take funds out of your IRA to pay your tax expenses.
A divorce tax attorney in Queens can tell you more about the financial professionals you may want to speak with over the course of your divorce so that you know what the various impacts will be to you. If you have a vacation property or intend to maintain the family home, you need to be clear about the tax basis of this property and any rules that are associated with capital gains taxes that could be imposed if you have a sale. There may be certain steps you can take to reduce these taxes. Furthermore, there are rules regarding various exemptions associated with alimony as well.
Your attorney should calculate the various tax implications associated with you and may need to work with financial professionals in order to assist you with this. Filing a joint tax return before or during divorce can also be especially complicated if you need clarity on your tax situation. Many people enjoy the financial advantages associated with filing a joint tax return, however, both of the taxpayers could be held liable jointly and individually for tax returns, even if they ultimately filed to get a divorce. This means that you need to understand this while you're going through the divorce and have a tax professional who can advise you. Filing a joint return while married or after a separation presents a spouse with significant risks they must guard themselves against.
The Internal Revenue Code of the IRS provides potential options for spouses who find each other in the position of having to defend an erroneous or an improper tax return and this is known as innocent spouse relief. You should engage with a financial professional early on in the divorce process so that you can understand these issues. You also need to understand tax affected earnings in a divorce. Pass through entities can have a significant impact on the valuation of various properties owned by you and your spouse.
You need to step back and review the technical part of the valuation and ensure that you have valuation professionals who have been working in this field for many years who can appropriately value the asset. An improper valuation could have a significant influence on your life after the divorce and therefore, you need to ensure that this process is done appropriately and with all issues in mind.