Divorce, property division can affect taxes

On behalf of South Tampa Law Group posted in property division on Thursday, May 3, 2018.

A divorce can have a lasting financial impact on an individual. By approaching the matter with a cool head, especially during the property division process, a person may be better prepared to make that impact a positive one and not a negative. In Florida, couples call it quits every day, so experts have compiled a useful checklist for reference while an individual undergoes the divorce process.

Tax concerns can be a major factor. Just as assets are shared during a divorce, debts are shared also. If a person filed jointly with a spouse, he or she is also jointly responsible for any tax liabilities. One should take steps to make sure he or she is informed of the tax situation. In some cases, a person can ask for an “innocent spouse” relief that will absolve the person of tax liability.

It can be tempting during the settlement to accept the first offer, just to get through the overwhelming emotions and get it over with. Unfortunately, people rob themselves of the fair and proper settlement that they earned and deserved by not closely examining the details of the deal. A team of professionals can help people ask the right questions about the division of marital property and also help with setting up finances for an independent future.

In Florida, a divorce settlement is legally binding and usually final, so it is worth the effort to take the time to do it right. Information and good questions are helpful to individuals seeking divorce and during property division. Many people also find the guidance of an experienced family law attorney helpful at this trying time.

Source: montereyherald.com, “Barry Dolowich, Tax Tips: Navigating taxes after a divorce“, Barry Dolowich, May 1, 2018