A Divorce Lawyer in Lowell Discusses the Tax Implications of Divorce
Few situations in life are as emotionally trying as a divorce, no matter the circumstances. However, a divorce lawyer in Lowell can best explain how the decisions that are made during the divorce impact the rest of one’s life. Understand the consequences and make the rights choices.
Basic Issues in a Divorce
Most people realize that as one household transforms into two, legal concerns involve such issues as:
• Division of assets
• Division of liabilities
As difficult and problematic as achieving an agreement on any of these can be, your divorce attorney in Lowell will caution that greater problems may occur down the road if one fails to realize there are tax consequences in each of these.
The sale of an asset may be required to satisfy the property settlement, which may trigger a capital gains tax. Where a separate property asset is involved, there must be an offset for the tax liability. Otherwise, as a divorce lawyer in Lowell points out, an inequity may result.
The sale of real estate may trigger capital gains, but a transfer of title may incur tax implications as well. If the property is subject to either accumulated back taxes or a lien of any sort, that property, as a divorce attorney in Lowell explains, may have a reduced value.
Other than an objective value of the business, available tax credits or liabilities must be factored in by your divorce lawyer in Lowell.
In final consideration of the amount agreed upon, alimony is deductible to the payor and taxable to the recipient. Further, a divorce lawyer in Lowell will point out the spouse who has primary custody of the children may declare dependent and exemption credits on his or her yearly tax returns, unless the exception was addressed in the parties separation agreement.
Contact a Divorce Attorney in Lowell for Legal Counsel
Economic considerations are just as important as emotional considerations in a divorce, and may have far reaching consequences. Get the experienced advice of a divorce lawyer in Lowell. Contact the Law Office of Bruce A. Gage. Our office is conveniently located at 491 Dutton St. Suite 211 (Business Center, 3rd Floor) Lowell, MA 01854.