When divorce is not an option dating


23-Sep-2019 23:33

Don't be fooled if your spouse offers you property of equal value but conveniently forgets to inform you of the tax liability.

As an example, you may be offered an investment account worth 0,000, but the cost basis is only ,000.

Often in a divorce settlement, one party will receive mostly illiquid assets, including the home, while the other party receives liquid assets such as retirement plans, brokerage accounts etc.

What is the potential problem with this type of settlement?

(Here are some divorce tax tips if you don't trust your husband's accounting.)If you were divorced after 12/31 and you qualify, filing as head of household versus single can also save considerable tax dollars.

Your best course of action is to consult with a tax professional regarding these options.

Income taxes are effected primarily by alimony payments and filing status for divorces finalized before 2019.

Alimony received is taxable as ordinary income, so a ,000 payment received is actually worth ,000 after taxes, assuming a 30% marginal state and federal tax bracket.

For example, if you paid for a share of stock and it is now worth , you have a capital gain of .Too often, a divorcing individual accepts an unfair settlement and finds that a few years later he or she is experiencing serious financial challenges. Following are brief summaries of these seven mistakes.



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