Taxation and Divorce

Divorce and Tax Law Attorneys

It does our clients little good to win their fair share of marital assets in a property settlement if a large part of those assets are eaten up by taxes. At the law office of Richard D. Doermer, Ltd., our attorneys are familiar with the intersection of divorce and tax law. We work to minimize your tax burden in all areas of marriage dissolution.

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We take a proactive approach to asset protection. It’s important to time the sale of the home or other assets so that most of the assets go to the individuals, rather than the government. If there will be long term capital gains when an asset is sold, we will recommend that the sale take place while you are still legally married and can exclude up to $500,000 of capital gains from taxation. The capital gains tax exclusion for unmarried individuals is $250,000.

Whether the asset involved is a vacation home, stocks or bonds, or an IRA, we take pains to properly plan the sale of asset so as to maximize the benefit to our client and minimize taxes.

We are familiar with the nuances of tax law as it affects divorce and will thoroughly advise you regarding your options. For example, unlike child support, alimony (spousal support) is included in the recipient's taxable income, and is a tax deduction for the payer. Depending on your circumstances, we may seek to have most support paid as alimony which allows the recipient to receive a higher payment, based on the payer's higher after-tax income.

If you have questions about tax law and divorce, please do not hesitate to contact a lawyer at our firm to schedule a consultation. We will be happy to advise you.