Tax Issues

Regardless of bitterness and regret that can overwhelm a divorcing couple, most reasonable people, even under this pressure, understand the importance of preserving as many assets as possible for family members. It is a shame to squander large portions of the marital estate on excessive attorney’s fees, taxes and interest to be paid on money borrowed to pay for a divorce.

An experienced family lawyer who has handled many high net worth and complex divorces such as yours will be able to deal with the complications cost-effectively. And a careful consideration of tax consequences of support and property division factors in your divorce decree may save a great deal for the spouses and any children involved.

I often need to remind my clients of the necessity to separate emotional issues from the purely business aspects of a divorce. One spouse or another may wish to cling to an asset such as “my pension” or an entitlement such as “my alimony” without considering the total financial picture that will emerge once all assets are divided and court orders are in place.

I also advise my clients to have a CPA review their divorce settlement agreements before signing them to alert them to any unexpected results of their division of assets in terms of taxable income or capital gains.

The marriage has already broken down. Aside from child custody issues, the rest of a divorce is in essence a business deal akin to the dissolution of a corporation. For this reason, it is essential that divorcing parties to pay close attention to the relationship between divorce and taxes. Talk to me to learn how I can help you arrive at a divorce agreement that preserves as many assets as possible for the family.

Contact me, New York family law attorney Jonathan D. Katz, to schedule a consultation regarding divorce and tax issues.