Family Law | Divorce in Relation to Income Taxes

Before filing for divorce, various federal tax concerns ought to be reviewed due to their potentially profound consequences. Each has consequences and its tax treatment.Division of PropertyMost divorces entail a division of the property possessed by the couple.There are, nevertheless, tax consequences following divorce that influence future taxes.The basis is typically the cost of the property. A capital gain is taxable at rates that are specific. So, when the receiving spouse later sells property distributed pursuant to a divorce decree, the spouse receiving the compensation may be required to pay taxes on the proceeds of the deal.In a divorce, for...